Minnesota Prediction Market Ban, New York Regulation Proposal Lead Gambling Bills That Mattered This Week

As legislative sessions near adjournment in many states, fewer gambling bills are advancing, with much of the remaining activity focused on targeted regulatory proposals and procedural measures. Still, prediction markets remained a focus this week, with Minnesota’s new prohibition triggering a lawsuit from Kalshi and New York lawmakers introducing a regulation proposal.

Here are the bills that mattered this week.

Minnesota Enacts Another Prediction Market Ban, Prompts Lawsuit

Minnesota Gov. Tim Walz signed SF 3432 this week, a broad safety and security bill that includes provisions to ban prediction markets. The measure repealed and replaced portions of SF 4760, which was enacted earlier this month.

SF 3432 quickly produced legal consequences. Within a day of enactment, Kalshi filed a federal lawsuit challenging the measure. The operator argued that the state cannot regulate or prohibit federally regulated event contracts.

The lawsuit came roughly a week after the CFTC separately sued Minnesota over prediction market provisions contained in SF 4760.

Why it matters:

Minnesota has now enacted two separate prediction market measures this year, drawing legal challenges from both Kalshi and the CFTC.

New York Bill Would Regulate Prediction Markets

New York Assemblymember John McDonald III introduced a proposal to regulate prediction markets. A 11521 would require operators to obtain a license from the state’s Department of Financial Services.

If enacted, the bill would require operators to maintain anti-money laundering programs, consumer protection policies, and internal controls designed to ensure market integrity. The proposal would also grant state regulators authority to suspend or revoke licenses, impose civil penalties, and order restitution for consumers.

The measure is the second prediction market-focused bill in New York this year. In January, Assemblymember Clyde Vanel introduced a bill to prohibit prediction market platforms from offering sports betting contracts to New York residents. That bill, however, has failed to gain traction.

Why it matters:

Unlike the earlier proposal, A 11521 seeks to regulate prediction markets rather than prohibit them. However, even if enacted, it will most likely be challenged by the CFTC or operators such as Kalshi, which are already involved in litigation with New York.

Connecticut Enacts Sports Betting Integrity Measure

Connecticut Gov. Ned Lamont signed SB 296, creating new criminal penalties for sports betting manipulation. The measure also expands the state’s authority to pursue unlicensed operators.

The bill makes it a felony to offer, solicit, or accept benefits in an attempt to alter the outcome of a sports wager. It also creates penalties for knowingly allowing underage individuals to access online gaming or sports betting accounts.

Separately, the bill authorizes the Attorney General to seek injunctions against individuals or companies that offer or advertise unlicensed sports wagering services in the state.

Why it matters:

Connecticut’s new law strengthens the state’s ability to address concerns about match-fixing, underage wagering, and unlicensed sportsbook activity.

Louisiana NIL Bill Passes Senate

The Louisiana Senate passed HB 513 this week, with the House scheduled to consider concurrence on May 29.

HB 513 authorizes high school athletes to earn NIL (name, image, and likeness) compensation. However, it prohibits NIL deals tied to casinos, sports betting, or any form of gambling. The bill also requires parental consent for minors and restricts the use of school marks without permission.

Why it matters:

Although NIL legislation is not a traditional gambling issue, athlete compensation remains relevant to broader sports integrity discussions.

Other New York Bills Advance

Sports Betting Transparency Bill Advances

Senate Bill 9415 advanced to third reading in the Senate on May 26. The measure, sponsored by Sen. Joseph Addabbo, would require New York online sports betting operators to provide customers with monthly electronic invoice statements detailing their betting activity.

The statements would include deposits, wagers, winnings, losses, net gain or loss, time spent logged into the platform, use of promotional credits, and access to lifetime wagering history.

The Assembly previously passed companion bill A10329 in March, though the Senate has not yet taken it up. Lawmakers in the Senate can conform SB 9415 to the bill already passed in the Assembly.

Why it matters:

New York is moving one step closer to expanding the information available to bettors. If enacted, the measure represents another responsible gambling-focused initiative in New York.

New York Orders Review of VLT Fees, Casino Tax Rates

Gov. Kathy Hochul signed S9009 on May 28. The bill contains several racing and gaming provisions, including extensions related to simulcasting, off-track betting governance, pari-mutuel wagering taxes, and standardbred testing.

The measure also authorizes additional vendor fees for certain video lottery gaming facilities. It directs the New York State Gaming Commission to study video lottery terminal vendor fees and commercial casino tax rates.

Why it matters:

While most of the gaming provisions are extensions or administrative changes, studying VLT vendor fees and commercial casino tax rates could inform future discussions on gaming economics and taxation in New York.