Judge halts Minnesota prediction market ban temporarily

A federal judge blocked Minnesota's prediction market ban, granting temporary relief to Kalshi and Polymarket, citing likely conflict with federal law. Enforcement is paused during the ongoing legal case.

A federal judge has issued a preliminary injunction temporarily blocking Minnesota's law banning prediction markets. This decision grants relief to Kalshi, Polymarket, and the Commodity Futures Trading Commission (CFTC), who challenged the law. Judge Katherine Menendez determined that the state law likely conflicts with the federal Commodity Exchange Act (CEA), suggesting that federal law may preempt the state ban. The injunction prevents Minnesota from enforcing the ban against Kalshi and Polymarket while the case is ongoing. However, it does not repeal the law or provide a final resolution to the dispute. The law, which was set to take effect on August 1, would have criminalized the operation and advertisement of prediction markets in the state. The central issue is whether the CFTC's federal authority over swaps and commodities exchanges overrides state-level bans. This ruling represents a significant, though temporary, legal victory for prediction market operators as litigation continues.