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Minnesota becomes first state to ban prediction markets, Trump administration sues

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Minnesota becomes first state to ban prediction markets, Trump administration sues

Walz signed the bill banning prediction markets from operating in Minnesota. The Trump administration is suing the state to block it.

By
Megan Germundson / MinnPost

May 20, 2026, 10:17 AM CT

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Megan Germundson, MinnPost.

Gov. Tim Walz signed a bill banning prediction markets like Kalshi and Polymarket from operating in the state, making Minnesota the first state to do so, NPR News reported Tuesday. In response to the new law, the Trump administration filed a lawsuit against the state Tuesday to block it, according to a press release from the Commodity Futures Trading Commission.

Minnesota’s new state law, part of the omnibus public safety bill, makes it a crime to host or advertise a prediction market, which is defined as a system where consumers “place a wager on the future outcome of a specified event,” like sports, elections, live entertainment, a person’s word choice and world affairs, and will take effect Aug. 1.

Supporters of the bill included some state lawmakers who have pushed to legalize sports betting in the state, reported the Minnesota Reformer. Those lawmakers argued the legislation will give the Legislature more control over which forms of gambling should be legal in the state.

Associate Justice Theodora Gaïtas has been appointed by Walz to serve as chief justice of the Minnesota Supreme Court, after current chief justice Natalie Hudson announced she will retire in September, MPR News reported Tuesday. 

Walz said Gaïtas “brings a rare breadth of experience, having served at every level of our state’s judiciary, and will be the first public defender to serve as chief justice of the Minnesota Supreme Court. That perspective will be invaluable, guiding her leadership as she takes on this profound responsibility to serve all Minnesotans,” in a press release.

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In more news from the governor’s office, Walz spent time Monday visiting Two Harbors surveying damage from the Stewart Trail wildfire, which has reached 100% containment, meeting with first responders and wildfire crews and vowing to support ongoing recovery efforts, the Duluth News Tribune reported Monday.

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The family of a student who was shot twice during the Annunciation school shooting is speaking out after lawmakers in the Minnesota Legislature failed to pass gun safety and school security legislation, KSTP reported Monday night.

“I don’t want this to continue,” Danielle Gunter, whose son Endre was shot twice in the stomach while attending the school’s mass at Annunciation Catholic Church, told KSTP. “We protect airports, we protect public spaces, we protect our government buildings. I’m confused at why we’re not protecting our children.”

The Twin Cities and the Minnesota Vikings will host the 2028 NFL draft, a three-day event expected to bring in hundreds of thousands of fans, the Minnesota Star Tribune reported Tuesday. Many of the draft’s festivities will take place in downtown Minneapolis, but events are also scheduled in St. Paul, Eagan and the Mall of America.

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Pet owners are being cautioned about Bobcat fever, or Cytauxzoon felis, a tickborne illness that can be deadly to cats, KARE 11 reported Tuesday. Veterinarians say Lone Star ticks and American dog ticks are the most common carriers of the disease, which can spread just a few hours after a cat is bitten by an infected tick. Symptoms of the disease include fever, lethargy, loss of appetite and yellowing of the skin.

Don’t miss these stories from MinnPost:

Megan Germundson / MinnPost
Megan Germundson / MinnPost
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