ST. PAUL, Minn. (KFGO/CBS Minnesota) – The Minnesota Senate passed a bill to ban most bets placed on prediction markets like Kalshi and Polymarket. The legislation passed 56-10 and bans wagers on topics like sports, weather, events in popular culture, war and death.
Roseville Senator John Marty says the platforms give way to an unregulated form of gambling, and could encourage behavior comparable to insider trading.
Last week, DFL Sen. Matt Klein, who is running to represent Minnesota’s 2nd Congressional District, came under fire after an investigative team at Kalshi found he had put money on himself to win the primary election. Klein was a proponent of the ban and said that though he had never bet before, he was curious and placed a $50 wager. Kalshi has since suspended him from the platform for five years.
After he was caught, Klein said his experience “points to the need for clearer rules and regulations on these types of markets.”
A similar bill is making its way through the tied Minnesota House, but its future is uncertain after GOP leadership noted that it could lead to future litigation. Earlier this month, the federal government sued Illinois, Connecticut and Arizona over their efforts to regulate prediction market operators.
But the legislation passed with broad bipartisan support in the Senate, and House leaders say Klein’s wager points to larger problems with the platforms.
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