Minnesota’s Prediction Markets Ban Draws Swift CFTC Lawsuit (1)

Minnesota’s freshly inked, first-of-its-kind prediction markets ban elicited quick legal action from the US agency that regulates derivatives trading, making it the sixth state to draw a lawsuit from the federal government over efforts to crack down on the booming industry.

The law, signed Monday by Gov. Tim Walz (D) and set to go into effect in August, is a “flagrant and unprecedented incursion” into the US Commodity Futures Trading Commission’s exclusive jurisdiction, the agency and the Justice Department said in a complaint filed Tuesday in the US District Court for the District of Minnesota aiming to halt it.

“The ...