The Trump administration is actively opposing a new Minnesota law that bans prediction markets, including platforms like Kalshi and Polymarket. Signed into law by Governor Tim Walz, this legislation makes it illegal to host or advertise 'event contracts' related to a wide array of outcomes, from sports events to personal statements. The law, which is set to take effect on August 1, imposes felony charges on violators, making Minnesota the first state to enact such a comprehensive ban. Critics of prediction markets argue that they resemble gambling and could facilitate insider trading, as certain outcomes may be manipulated or known in advance. In a statement, CFTC Chairman Michael Selig expressed concern that the law criminalizes lawful operators and participants in these markets, effectively turning them into felons overnight. This legal battle is part of a broader effort by the CFTC, which has previously filed lawsuits against five other states—Arizona, Connecticut, Illinois, New York, and Wisconsin—for attempting to restrict prediction-market operations. The entry of prediction markets into the sports betting sector poses a potential threat to existing legal operations, raising concerns among regulators about the implications for the gambling landscape.