Trump's Justice Department is suing Minnesota to block its ban on prediction markets like Kalshi and Polymarket, bad news for states trying to rein in unregulated gambling.

• Minnesota just made it a felony to run or advertise prediction markets, the first state to do so.
• The DOJ argues only the federal government can regulate these markets, which sites like Kalshi insist are "futures trading" not gambling.
• 14 other states including Hawaii and North Carolina have similar bills, and over 20 lawsuits are already pending.
• A Nevada judge already forced Kalshi to pause sports betting after ruling it looks identical to regular sports gambling.
• Critics say these platforms target young people and low-income users with no real safeguards, while news outlets wrongly cite bettors' odds as if they were polls.

Outlook: The fight heads to court, with the Trump administration and prediction market companies aligned against state regulators.