Prediction market ban: bad news for Polymarket and Kalshy.

Minnesota has become the first state to pass a full ban on prediction market websites, including well-known platforms such as Polymarket.

Prediction markets let people put money on future events, such as sports results, elections, entertainment outcomes and world events.

Gov. Tim Walz signed the law, which is due to take effect in August 2026. It makes it a crime to host or advertise a prediction market in Minnesota, and it can also cover services that help people get around location blocking like VPNs.

Obviously, Minnesota is trying to protect residents, including children, from gambling risks and loopholes. The law leaves room for certain financial contracts, such as insurance-style products and securities or commodities trades. The federal Commodity Futures Trading Commission has already sued to stop the law, saying these markets are federally regulated financial products.

Watch this space.

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