Minnesota Gov. Tim Walz has signed the nation’s first law banning prediction market sites from operating in the state, the most far-reaching crackdown on massively popular services like Kalshi and Polymarket.
It comes as states confront a growing standoff with the Trump administration over how to regulate the industry, which allows people to bet on virtually anything.
The new state law makes it a crime to host or advertise a prediction market, which it defines as a system that lets consumers place a wager on a future outcome, like sports, elections, weather, live entertainment, someone’s word choice and world affairs.
The prohibition extends to services supporting prediction markets, like virtual private networks, that could allow consumers to disguise their location and get around the ban.
It would force prediction market sites like Kalshi and Polymarket to leave the state, or face possible felony charges. The law takes effect in August.
I mean you could make the argument that the commerce clause tells the state they can’t ban VPNs. Ultimately it will be up to the SC to dictate the laws as they have been lately.
You know what, you’re right one could make the argument that states don’t even have the authority to ban vpns.
They can totally ban VPNs in the state. They can’t ban VPNs out of the state.
It’s kind of seems like that would be a state regulating interstate commerce. And international Commerce which is exclusively the Federal prerogative.
If they tried to ban a VPN outside of the state I would agree with you. Also, the way the law is written you have to know that is what the service is being used for to be criminally liable.
I will admit this could cause a chilling situation where VPNs voluntarily block these sites when a user can be determined to be from this state. I think that is their intention though.