Minnesota lawmakers debate betting legalization, prediction markets ban

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Two separate bills, one proposing to establish legal online sports betting and another seeking to prohibit prediction markets, have gone through a review by Minnesota lawmakers.

Betting draft law didn’t get any traction

Earlier this week, the State Senate Committee on Commerce and Consumer Protection reviewed the two bills. At the recent hearing, Senate File 4139 (SF 4139), the draft law proposing the authorization and regulation of sports betting, was presented for informational purposes only. On the other hand, the Committee voted and advanced Senate File 4511 (SF 4511), a bill proposing to ban prediction markets. Minnesota is among several states that are yet to legalize online sports betting. Under SF 4139, the state would establish a competitive sports betting market, awarding nearly a dozen licenses to Tribal operators. The draft law sets out a framework for regulating sports betting and establishes requirements for licensees, standards for advertising, as well as other rules. The proposal seeks to grant the Minnesota Department of Public Safety the authority to regulate online sports betting. Despite being reviewed by the Committee, SF 4139 didn’t progress further and wasn’t put up for a vote.

Proposal banning prediction markets progresses

Importantly, the bill proposing to prohibit the popular prediction markets picked up speed. SF 4511’s description reads: Certain wagers and other activities regarding prediction markets, prohibition provision and certain criminal convictions disqualifying for receiving a lawful gambling license provision. Ultimately, the draft law proposes to prohibit prediction markets and enforce punishment for breaching the regulations. Under SF 4511, individuals offering prediction markets to Minnesota customers would face felony charges. Equally as important, the bill prohibits the advertising of prediction markets, and anyone engaging in such activities would also face felony charges. In case the proposal banning prediction markets is signed into law, it seeks to enforce the new rules, effective August 1, 2026. After clearing the Committee on Commerce and Consumer Protection, SF 4511 was referred to the Senate Finance Committee.