If a prediction market uses AI will this violate the federal ban on states impeding AI?
Using AI to identify the ideal neighborhoods to sell meth in doesn't mean it's legal to sell meth.
Minnesota becomes first state to ban prediction markets
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Re: Minnesota becomes first state to ban prediction markets
#22as the article notes, prediction markets are regulated by the CFTC as a commodities futures contract, so I'm not sure how any state law survives a federal pre-emption challenge. On the other hand, it's a little unusual to see a federal agency suing to protect its turf. Would've expected a class action by a Minnesota user of the service to bring the challenge instead.
I'm curious to see how this works out, because sports betting is _not_ in the CFTC's remit, and Kalshi etc's argument that states can't regulate them because they're not technically sports betting is contrary to the spirit of the law
There’s no “house” or “book” aspect to Kalshi. They are nothing more than contracts that are bought and sold between individuals.
Re: Minnesota becomes first state to ban prediction markets
#23[flagged]
Re: Minnesota becomes first state to ban prediction markets
#24[flagged]
Do explain the Somalia connection you perceive. Please, go on…
Re: Minnesota becomes first state to ban prediction markets
#25Isn't the stock market a prediction market as well?
The difference in my mind is that prediction markets and gambling are betting on outcomes, not long term behaviors. You could make the argument that they are the same, in the sense that buying a stock is "betting" on a company to do well, but I think you'd be making a silly argument. Stocks are intangible these days, but they were traditionally a physical thing that one would trade. If you're betting on prediction ma…
Not exactly. Kalshi is binary options. Not stocks.
Re: Minnesota becomes first state to ban prediction markets
#26Earlier quoted context omitted.
I'm curious to see how this works out, because sports betting is _not_ in the CFTC's remit, and Kalshi etc's argument that states can't regulate them because they're not technically sports betting is contrary to the spirit of the law
There’s no “house” or “book” aspect to Kalshi. They are nothing more than contracts that are bought and sold between individuals.
How do they make money?
Re: Minnesota becomes first state to ban prediction markets
#27as the article notes, prediction markets are regulated by the CFTC as a commodities futures contract, so I'm not sure how any state law survives a federal pre-emption challenge. On the other hand, it's a little unusual to see a federal agency suing to protect its turf. Would've expected a class action by a Minnesota user of the service to bring the challenge instead.
Re: Minnesota becomes first state to ban prediction markets
#28[flagged]
Re: Minnesota becomes first state to ban prediction markets
#29Re: Minnesota becomes first state to ban prediction markets
#30[flagged]
There's plenty of legal gambling in Minnesota. To quote the Minnesota Legislative Reference Library it includes
"horse racing, a card club at Canterbury Park, Indian tribal casinos, charitable gambling, and a state lottery."