Committee moves to ban prediction‑market betting on sports, politics and other enumerated outcomes

Senator Marty presented Senate File 45‑11 to the Judiciary and Public Safety Committee, describing the measure as an effort to close a loophole used by online prediction markets that allow betting on sports, political outcomes, terrorism and other events. He said the bill would make clear that using predictive markets to facilitate bets on those outcomes is illegal betting under Minnesota law and would give the Alcohol Gambling Enforcement Division tools to issue cease‑and‑desist orders and pursue criminal penalties for operators that ignore enforcement.

"This bill would take any of those prediction markets ... that are betting on athletic events, on, casino type traditional games, war, national emergencies, politics and government ... and make that a felony" if the operator fails to comply after enforcement, Senator Marty said. Sponsors emphasized they were not trying to touch legitimate commodity futures markets or regulated investment products; the text exempts commodity futures and other regulated activities.

Committee members raised questions about federal preemption and which federal agencies might claim jurisdiction; supporters said state action is warranted while federal policy remains unsettled. After adopting author and technical amendments the committee recommended the bill be referred to the Senate Committee on State and Local Government for further work on enforcement and jurisdictional issues.

Next steps: SF 45‑11 was referred to State and Local Government for additional consideration, including enforcement mechanics and potential interactions with federal regulators.