The lawsuit by the commission targets Governor Tim Walz and other state officials following their adoption of the new bill SF 4760. Starting from August 1, 2026, Minnesota has banned all prediction markets—from sports to political events. The CFTC emphasizes that criminal liability in the state is improperly extended to other market participants, including banks, payment systems, media organizations, and sports leagues that advertise, verify, or provide data related to prediction markets. The CFTC claims it has exclusive regulatory authority over the sector at the federal level. Therefore, Minnesota is not allowed to criminalize or prohibit it. Previously, the agency filed similar lawsuits against Illinois, Arizona, and Connecticut, defending its regulatory rights.