Minnesota becomes first state to ban prediction markets

Minnesota became the first state to pass a law banning prediction markets like Kalshi and Polymarket, effective August 1, 2026, drawing a large Hacker News discussion split between libertarian efficiency arguments and gambling-addiction concerns. The U.S. Department of Justice sued the day after the law passed to stop it taking effect, and in July 2026 a federal judge ruled against Minnesota, finding federal law gives the CFTC exclusive jurisdiction over platforms like Kalshi. The case leaves other states weighing similar bans under a cloud of federal preemption.