Regulation roundup: Colorado, Minnesota, Wisconsin, and more
States continue to move against prediction markets, while Oklahoma overrides its governor
Colorado player protection progresses through Senate
A Colorado bill aiming to introduce sweeping player protection measures was narrowly approved by the state’s Senate on Wednesday, May 13, and now awaits a signature from Governor Jared Polis.
The legislation would ban credit card deposits, push notifications, marketing targeted at under-21s, and place daily limits on deposit frequency.
SB131 was voted through by 20-15 and subjected to minor amendments on the final day of the state’s legislative session.
Governor Polis now has 30 days to decide whether to sign the bill, veto it, or do nothing and allow it to become law by default.
Minnesota prediction markets ban close to becoming law
Minnesota could become the first state to explicitly ban prediction markets with the requisite legislation now sitting on Governor Tim Walz’s desk.
Senate File 4760 is a wide-ranging public safety bill including provisions for laws on driving, theft, and fraud.
The bill was originally introduced in March by Senator Ronald Latz, and would allow the state regulator to send cease-and-desist letters to prediction markets operating in the state with the right to a hearing.
If SF4760 does become law, it could face legal action from the Commodity Futures Trading Commission, which has taken a permissive view of the prediction market platforms such as Kalshi and Polymarket that it regulates under the leadership of Mike Selig.
Wisconsin Governor signs prediction markets executive order
Wisconsin Governor Tony Evers has signed an executive order banning state government workers from using insider information to trade on prediction markets.
Signed on Thursday, May 14, Executive Order 294 reads: “Any violation of this order may result in dismissal, referral to the Wisconsin Ethics Commission, or other appropriate sanctions and may be referred to law enforcement.”
At the start of this month, the US Senate introduced a similar bipartisan rule banning its members and staff from using prediction markets.
Oklahoma lawmakers override Governor veto
The Oklahoma legislature has overridden Governor Kevin Stitt’s veto of a sweepstakes ban approved by the state House earlier this month on May 5.
Stitt vetoed the bill last week, arguing “it criminalizes everyday apps people use for fun” and “discourages innovation and investment.”
Both chambers decided to override the veto. The bill remains set to become law on November 1.
The ban will not apply to games that comply with the Oklahoma Charity Games Act and the Indian Gaming Regulatory Act.