Federal Judge Blocks Minnesota’s Prediction Market Ban, Allowing Kalshi and Polymarket to Operate

TLDR

• A US federal judge issued a preliminary injunction blocking Minnesota’s prediction market ban
• The ruling covers CFTC-regulated platforms Kalshi and Polymarket US
• Judge Katherine Menendez found the state law likely conflicts with the federal Commodity Exchange Act
• The CFTC itself was also a plaintiff in the lawsuit against Minnesota
• The injunction stays in place until a final decision on the merits is reached

A federal judge has temporarily blocked Minnesota from enforcing a new law that would have banned prediction markets in the state, letting Kalshi and Polymarket US keep operating while the case works through the courts.

Kalshi and Polymarket Gain Temporary Legal Win as Court Blocks Minnesota Ban

Reuters reported that a U.S. federal judge has blocked Minnesota from enforcing a new law that would have become the first state law in the country to directly ban prediction markets such as Kalshi and… pic.twitter.com/5EogYw9RHg

- Wu Blockchain (@WuBlockchain) July 27, 2026

US District Judge Katherine Menendez issued the preliminary injunction on Monday. She ruled that Minnesota’s law is likely preempted by the federal Commodity Exchange Act.

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