The Trump administration on Tuesday filed a lawsuit against Minnesota, seeking to block its new ban on prediction markets. 

Gov. Tim Walz (D-MN) signed a controversial bill into law earlier this week that imposes criminal penalties for operating or advertising a prediction market in the state. The Commodities Futures Trading Commission sued to block its implementation, arguing that the state lacks the authority to ban most bets placed on prediction markets such as Kalshi and Polymarket. The federal government has jurisdiction over prediction markets through the CFTC, the lawsuit states, warning that the law would upend Minnesota’s agricultural industry due to its criminalization of weather-related event contracts.