Minnesota's gambling loophole: Lawmakers tackle prediction markets

ST. PAUL, Minn. (FOX 9) - Efforts to legalize sports betting in Minnesota have faced obstacles, but now a new focus has emerged on banning prediction markets.

Efforts to ban prediction markets gain traction

What we know:

A few sites and apps operate in a gray area, allowing bets on a wide variety of predictions, including sports. Sen. John Marty has long opposed sports betting in Minnesota and is now focusing on prediction markets, which he sees as a growing concern.

Sen. John Marty has teamed up with a bipartisan group to support a bill banning prediction markets. This group includes Sen. Matt Klein, who supports legalizing sports betting.

What they're saying:

Sen. Marty says prediction markets are exploding. He thinks they’re already illegal, but he wants to make it clear before they get too entrenched. 

"If you look at where prediction markets were a year ago, how many people even heard of them? I mean, it was down here. Now it's up here already. If we don't do something this year, it's going to be through the roof."

The other side:

Sen. Matt Klein argues that prediction markets are problematic and unregulated, allowing bets on sensitive topics. He supports banning these markets while advocating for the legalization of regulated sports betting.

Sen. Jordan Rasmusson is also addressing online sweepstakes that resemble gambling using real money. He believes that any gambling expansion should occur at legal casinos to minimize harm.

What we don't know:

The timeline for passing the prediction markets ban is uncertain, as lawmakers are running out of time to get bills through committees during this year's session.