This week saw a quieter atmosphere for gambling legislation, with notable developments in Minnesota and New York. As many states approach the end of their legislative sessions, the focus has shifted towards specific regulatory proposals rather than a flurry of new gambling bills.
In Minnesota, Governor Tim Walz has enacted SF 3432, a comprehensive safety and security bill that includes a ban on prediction markets. This new law replaces parts of SF 4760, which was passed earlier this month. The immediate consequence of this ban was a federal lawsuit filed by Kalshi, which argues that the state lacks the authority to regulate federally sanctioned event contracts.
This legal challenge follows a separate lawsuit from the CFTC against Minnesota regarding the prediction market provisions in SF 4760. With two prediction market measures enacted this year, Minnesota is now facing legal scrutiny from both Kalshi and the CFTC.
Meanwhile, in New York, Assemblymember John McDonald III has proposed a bill (A 11521) aimed at regulating prediction markets. If approved, this legislation would require operators to secure a license from the state’s Department of Financial Services and adhere to anti-money laundering protocols and consumer protection measures. This proposal marks a shift from earlier attempts to ban prediction markets, although it may still face challenges from the CFTC and operators like Kalshi.
In Connecticut, Governor Ned Lamont has signed SB 296, which introduces new criminal penalties for manipulating sports betting. This law expands the state's authority to take action against unlicensed operators and makes it a felony to attempt to influence the outcome of a sports wager. It also establishes penalties for allowing minors to access online gaming or sports betting accounts.
Additionally, the Louisiana Senate passed HB 513, which allows high school athletes to earn compensation from their name, image, and likeness (NIL). However, it prohibits any NIL agreements related to casinos or gambling, requiring parental consent for minors involved.
Lastly, in New York, the Sports Betting Transparency Bill (SB 9415) has progressed to its third reading in the Senate.