This bill addresses public safety by prohibiting certain wagers and activities related to prediction markets, establishing criminal penalties for violations, and amending existing laws regarding gambling licenses. It specifies that individuals with certain criminal convictions, including felonies and specific crimes related to gambling, assault, and firearm violations, will be disqualified from receiving or renewing a lawful gambling license. Notably, the bill introduces a new disqualification criterion for those convicted of violations related to prediction markets within the past ten years. The amendments to Minnesota Statutes 2024, sections 349.155 and 609.75, also clarify what constitutes a bet and outline the conditions under which licenses may be revoked.

Additionally, the bill creates a new section in Minnesota Statutes that explicitly prohibits the creation and operation of prediction markets, defining them as systems allowing wagers on future events not determined by the performance of the parties involved. It establishes various activities related to prediction markets as felonies, including creating, managing, or advertising such markets. Exceptions are made for certain activities that do not qualify as bets under existing law. The effective date for these provisions is set for August 1, 2026, applying to crimes committed on or after that date.

Statutes affected:
Introduction: 609.75, 609.76
1st Engrossment: 349.155, 609.75