Committee hears bill to ban unregulated prediction markets, citing youth and consumer risks

Representative Emma Greenman introduced House File 44‑37 and explained the bill would define and prohibit illegal prediction markets that function as unregulated sportsbooks, give the Attorney General (or designated regulator) cease‑and‑desist authority, and preserve exemptions for regulated gambling and insurance markets.

Representative Greenman said prediction platforms allow anonymous wagering on a broad range of outcomes and have advertised themselves as betting venues without state consumer protections. “They set up a series of binary contracts that allow people to bet and get paid out based on the outcome of an event,” the sponsor said, urging the committee to preserve Minnesota’s regulatory authority over gambling.

Testimony in support came from Citizens Against Gambling Expansion and the Joint Religious Legislative Coalition. Thomas Meeks called prediction markets “the wild west of gambling,” citing advertising aimed at younger users and a lack of state oversight. Leah Patton (Joint Religious Legislative Coalition) said the platforms’ ability to let users wager on tragedies and disasters presents “a significant danger to those at risk of developing compulsive gambling behaviors, particularly young people.”

Members discussed legal risk. Committee counsel explained that under federal law (the Commodity Exchange Act) some platforms use a self‑certification process for markets and that recent litigation has produced a circuit split; that counsel noted the national legal picture could lead to further federal litigation. Some members warned the state may face costly lawsuits, while others argued Minnesota should act to protect residents and assert its regulatory framework.

Representative Greenman said she would lay HF4437 over to continue work; the committee laid the bill over as amended.