Minnesota Includes Prediction Market Prohibition Language in Public Safety Bill

• A Senate-approved bill to ban certain prediction markets stalled in the House, but its language has been installed in a public safety omnibus bill
• SF 4760, on omnibus public safety package, was amended to include language banning certain prediction markets from Sen. John Marty’s (DFL-40) bill, SF 4511
• A conference committee approved the bill this morning and the legislation has been sent back to both the House and Senate for potential approval

Minnesota may indeed pass legislation to ban certain prediction markets in the state, but will not to do through a standalone bill.

Minnesota lawmakers this morning approved SF 4760, an omnibus public safety package, which includes language from the Senate-approved bill SF 4511. SF 4511 seeks to prohibit prediction market contracts based on sports, politics, war, weather, and other markets.

A seven-member bipartisan conference committee approved SF 4760 this morning, sending the legislation back to the House and Senate for potential approval.

No Movement in House

The Senate approved  Sen. John Marty’s (DFL-40) bill, SF 4511, by a 56-10 vote on April 30. However, the standalone bill gained little traction in the House. Earlier this week, language from Marty’s legislation banning certain prediction markets in Minnesota was added to SF 4760, which had already passed both legislative chambers, and was scheduled for a conference committee.

Despite several proposed amendments, Marty’s prediction market prohibition language survived the final passage of the bill.

The House and Senate will both have to agree on the changes made to SF 4511 before ultimately being sent to Gov. Tim Walz (D) to potentially be signed into law.

The legislation prohibits prediction market contracts centered around the following types of markets:

• Whether a person will make a particular statement
• An athletic event or game of skill
• Any game played with cards, dice, equipment, or any mechanical or electronic device or machine
• War, state or national emergencies, natural or human-made disasters, mass shooting, acts of terrorism, or public health crises
• Federal, state, or local elections
• Legal actions, including but not limited to a civil or criminal suit, grand jury action, jury trial, settlement, plea, or conviction
• Weather
• Death, assassination, or attempted killings
• Events in popular culture, including but not limited to awards and the date a piece of entertainment will be released

Prediction Ban Has Bipartisan Support

Rep. Emma Greenman (DFL-63B) proposed the amendment to SF 4760 that included Sen. Marty’s prediction market language.

“The prediction market ban has now passed with bipartisan support in the House and Senate, showing broad support for protecting our young people, our communities, and our public decision-making from these shadowy prediction gambling markets. It is critical we act this year to address this explosion of gambling on almost anything and rein in these Big Tech billionaires who skirt the law to circumvent our state authority and hurt our children just to line their own pockets,” she said in a released statement.

Despite support, the changes have yet to receive final approval from the House or Senate. Additionally, even if signed into law, the Commodity Futures Trading Commission (CFTC) would likely challenge the law in court.

The CFTC recently filed several lawsuits against states such as Wisconsin and New York to reaffirm its exclusive regulatory jurisdiction over prediction markets.