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Committee seeks to block prediction‑market betting that mimics gambling
Summary
Senate File 4511 would clarify state gambling law to prohibit prediction markets and dual‑use commodity‑future platforms that enable bets on politics, sports or other events. Sponsors said the bill targets operators and insider‑trading risks; the committee adopted amendments and sent the bill to Commerce.
Senate File 4511 moved out of the State & Local Government Committee after lawmakers said it would clarify that certain online prediction markets and related products that operate like bets are unlawful in Minnesota.
Senator Marty presented the bill as a narrow clarification of existing gambling law, explaining proponents want to cover platforms that have repackaged betting as commodity or prediction markets to skirt state restrictions. “Prediction markets are coming in here and basically saying we’re legal — you can bet on anything you want,” Marty said, arguing the bill will close a loophole and reduce opportunities for insider trading and corruption.
Witnesses said the statute would target a small number of national or international platforms that are intentionally structuring products to evade Minnesota’s gambling rules. Committee members asked about effective dates and whether platforms would have time to implement geolocation or verification controls; supporters said the standard August 1 effective date for new crimes and the administrative enforcement process (warnings, cease‑and‑desist) give platforms time to comply.
The committee adopted the A6 amendment to refine prohibited activities and penalties and recommended the bill to pass and be referred to the Commerce Committee. Several senators described the bill as bipartisan and aimed at protecting regulated gambling markets and consumers.
The committee’s motion to recommend passage was approved by voice vote after the amendment was adopted; the committee record shows the amendment was adopted and the measure was referred to Commerce for further consideration.
