1.1.................... moves to amend S. F. No. 4760, the second engrossment, as amended, as
1.2follows:
1.3Page 62, after line 21, insert:

1.4    "Sec. .... Minnesota Statutes 2024, section 609.75, subdivision 3, is amended to read:
1.5    Subd. 3. What are not bets. The following are not bets:
1.6(1) a contract to insure, indemnify, guarantee or otherwise compensate another for a
1.7harm or loss sustained, even though the loss depends upon chance;
1.8(2) a contract for the purchase or sale at a future date of securities or other commodities,
1.9except as provided in section 609.7615;
1.10(3) offers of purses, prizes or premiums to the actual contestants in any bona fide contest
1.11for the determination of skill, speed, strength, endurance, or quality or to the bona fide
1.12owners of animals or other property entered in such a contest;
1.13(4) the game of bingo when conducted in compliance with sections 349.11 to 349.23;
1.14(5) a private social bet not part of or incidental to organized, commercialized, or
1.15systematic gambling;
1.16(6) the operation of equipment or the conduct of a raffle under sections 349.11 to 349.22,
1.17by an organization licensed by the Gambling Control Board or an organization exempt from
1.18licensing under section 349.166;
1.19(7) pari-mutuel betting on horse racing when the betting is conducted under chapter 240;
1.20and
1.21(8) the purchase and sale of State Lottery tickets under chapter 349A.
1.22EFFECTIVE DATE.This section is effective August 1, 2026.

2.1    Sec. .... [609.7615] PREDICTION MARKETS.
2.2    Subdivision 1. Definitions. (a) As used in this section, the following terms have the
2.3meanings given.
2.4(b) "Athletic event" means a sports game, match, or activity, or series of games, matches,
2.5activities, or tournaments involving the physical proficiency of one or more players or
2.6participants. Athletic event includes horse racing as defined in section 240.01, subdivision
2.78.
2.8(c) "Esports event" means a competition between individuals or teams using video games
2.9in a game, match, contest, or series of games, matches, or contests, or a tournament, or by
2.10a person or team against a specified measure of performance which is hosted at a physical
2.11location or online.
2.12(d) "Game of skill" means a game, match, or tournament, or a series of games, matches,
2.13and tournaments involving the dexterity or mental skill of one or more players or participants.
2.14Game of skill includes an esports event.
2.15(e) "Prediction market" means a system that allows consumers to place a wager on the
2.16future outcome of a specified event that is not determined or affected by the performance
2.17of the parties to the contract, including but not limited to:
2.18(1) an athletic event or game of skill, or portions thereof or individual performance
2.19statistics therein;
2.20(2) any game played with cards, dice, equipment, or any mechanical or electronic device
2.21or machine;
2.22(3) war, state or national emergencies, natural or human-made disasters, mass shootings,
2.23acts of terrorism, or public health crises, or the ancillary effects thereof;
2.24(4) any event or events happening to a natural person or group of people;
2.25(5) a federal, state, or local election, or the actions or conduct of the federal, state, or
2.26local government and the government's agencies, employees, and officers;
2.27(6) legal actions, including but not limited to a civil or criminal suit, grand jury action,
2.28jury trial, settlement, plea, or conviction;
2.29(7) the death, assassination, or attempted killing of a person or group of persons, or mass
2.30casualty events;
2.31(8) the weather;
3.1(9) events in popular culture, including but not limited to awards and the date a piece
3.2of entertainment will be released; and
3.3(10) whether a person will make a particular statement.
3.4(f) "Wager" means a contract, including a prediction market contract, whereby the parties
3.5to the contract agree to a gain or loss by one to the other of money, property, or benefit.
3.6    Subd. 2. Prediction markets; hosting prohibited. A person is guilty of a felony if the
3.7person, for consideration and as part of a business:
3.8(1) creates a prediction market;
3.9(2) operates, manages, or controls a platform or system intending that consumers will
3.10use the platform or system to make wagers in a prediction market;
3.11(3) intentionally facilitates the operation of a prediction market by:
3.12(i) identifying or listing events knowing the events will be used by consumers to make
3.13wagers;
3.14(ii) accepting, holding, or directing the disposition of funds or other things of value for
3.15the purpose of allowing consumers to make wagers or to settle wagers made by consumers;
3.16(iii) determining, administering, or enforcing the terms, pricing, or settlement of wagers
3.17made by consumers;
3.18(iv) regularly or continuously acting as a counterparty to wagers made by consumers by
3.19entering into a wager, offering to enter into a wager, or taking a temporary position in a
3.20wager that may be replaced by a different consumer; or
3.21(v) setting or adjusting the prices, odds, or terms that apply to wagers entered into by
3.22consumers;
3.23(4) provides data, information, or verification services, including the provision of event
3.24outcomes, directly to a prediction market knowing that the data, information, or verification
3.25services will be used to allow consumers to make wagers or to settle wagers made by
3.26consumers; or
3.27(5) provides supportive services to a prediction market or consumer knowing that the
3.28services will be used to identify a consumer's location, transfer funds, or make or process
3.29payments for the purpose of allowing consumers to make wagers or to settle wagers made
3.30by consumers.
4.1    Subd. 3. Prediction markets; advertising prohibited. Whoever advertises or markets
4.2financial or technological products that promote transactions prohibited under this section
4.3is guilty of a felony.
4.4    Subd. 4. Exceptions. Subdivision 2 does not apply to:
4.5(1) activities that are not bets under section 609.75, subdivision 3; and
4.6(2) contracts authorized and regulated under chapters 59A to 79A.
4.7EFFECTIVE DATE.This section is effective August 1, 2026, and applies to crimes
4.8committed on or after that date."
4.9Renumber the sections in sequence and correct the internal references
4.10Amend the title accordingly