Court Sides With Kalshi and Polymarket Over Minnesota’s August 1 Ban
A federal judge blocked Minnesota's prediction market ban on Monday, handing Kalshi, Polymarket US, and the Commodity Futures Trading Commission (CFTC) a preliminary injunction days before the law's August 1 effective date.
US District Judge Katherine Menendez found the Commodity Exchange Act (CEA) likely preempts the statute. Her order bars enforcement against CFTC-registered designated contract markets (DCMs) until a final merits decision.
Why the Court Found Federal Law Likely Preempts Minnesota's Statute
Menendez issued the order in 3 related cases against Minnesota, Attorney General Keith Ellison, Governor Tim Walz, and other state officials. Kalshi, Polymarket US, and the federal government each won their injunction motions.
Minnesota's law, Minn. Stat. § 609.7615, makes operating or creating a prediction market a felony. It covers sports, elections, legal actions, pop culture, and statements by specific people. Advertising and providing data services also carry criminal penalties.
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