Kalshi, Polymarket Obtain Temporary Halt of Minnesota Prediction Market Ban
2026-07-27 23:33
Odaily Odaily reports that U.S. District Judge Katherine Menendez for the District of Minnesota ruled on Monday that a recently enacted Minnesota state law banning prediction markets may conflict with the Commodity Exchange Act. She granted a preliminary injunction in favor of Kalshi, Polymarket, and the Commodity Futures Trading Commission (CFTC).
Kalshi, Polymarket, and the CFTC had sued the state of Minnesota earlier this year after the state passed a law classifying the operation of prediction markets within the state as a criminal offense.
The three parties argued that prediction market contracts are structured as "swaps" and that the state law infringes upon the CFTC's regulatory authority over such products. In her ruling, Judge Menendez stated that the parties are likely to succeed on the merits of their claim that the federal Commodity Exchange Act preempts the state law.
Kalshi, Polymarket, and the CFTC had sued the state of Minnesota earlier this year after the state passed a law classifying the operation of prediction markets within the state as a criminal offense.
The three parties argued that prediction market contracts are structured as "swaps" and that the state law infringes upon the CFTC's regulatory authority over such products. In her ruling, Judge Menendez stated that the parties are likely to succeed on the merits of their claim that the federal Commodity Exchange Act preempts the state law.
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