Kalshi and Polymarket Score a Key Court Win With Minnesota Ban Put on Hold

TL;DR

• Injunction: A federal judge paused Minnesota’s SF 3432, giving Kalshi and Polymarket temporary relief. At the same time, the court reviews whether the law is preempted.
• Swap Question: The ruling hinges on whether certain event‑based contracts qualify as swaps under federal law, with the judge finding some markets offered by Kalshi and Polymarket meet that threshold, and others do not.
• Broader Fight: Minnesota pushed back against the decision as the CFTC continues to sue states over similar laws, with Kalshi and Polymarket joining the Minnesota case shortly after federal agencies filed their challenges.
  

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A federal judge has temporarily stopped Minnesota from enforcing SF 3432, the first state law designed to criminalize prediction markets, giving Kalshi and Polymarket a significant early victory. The preliminary injunction, granted Monday, pauses the statute just days before it was set to take effect and marks a pivotal moment for the platforms and the Commodity Futures Trading Commission, which jointly challenged the measure.

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