Federal judge blocks Minnesota prediction market ban days before launch
A state law doesn’t get blocked by a federal judge every day — and when the Minnesota prediction market ban nearly took effect this Saturday, the courts stepped in first. US District Judge Katherine Menendez issued a preliminary injunction on Monday, halting the law before it could go live and allowing CFTC-regulated platforms Kalshi and Polymarket US to keep operating in the state.
Key takeaways
- US District Judge Katherine Menendez issued a preliminary injunction blocking Minnesota’s prediction market ban on Monday, days before it was set to take effect.
- The ruling allows Kalshi and Polymarket US — both regulated by the CFTC — to continue operating in Minnesota while the case proceeds.
- Judge Menendez found the state law likely conflicts with the federal Commodity Exchange Act, which grants the CFTC exclusive jurisdiction over swaps.
- The CFTC joined Kalshi and Polymarket US as a co-plaintiff in the lawsuit, signaling a broader federal intent to defend its regulatory turf nationally.
- The injunction is preliminary, not a final ruling; a full trial will determine the outcome on the merits.
Federal Judge Issues Preliminary Injunction Against Minnesota’s Prediction Market Ban
Minnesota’s law was unusually aggressive. Passed as part of a broader public safety bill, it would have banned the creation, operation, and advertising of prediction markets within the state — with criminal penalties for violations. State Rep. Emily Greenman, in an interview with NBC News, framed the issue squarely: “Gambling has always been a public health and a public safety issue since states have been regulating it, and that has always been an uncontested fact.”
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