Kalshi Wins as Judge Blocks Minnesota Prediction Markets Ban

Key Insights

• Kalshi secured temporary relief against Minnesota’s prediction market ban.
• The court found federal law likely preempted parts of the statute.
• Polymarket retained Minnesota access while the broader lawsuit continued.

Kalshi secured temporary relief on July 27 after a federal judge blocked Minnesota’s prediction market ban. U.S. District Judge Katherine Menendez found federal commodities law likely preempted parts of the state statute. The ruling kept Kalshi and Polymarket operating before the law’s Aug. 1 effective date.

The order preserved existing market access while the court considered the broader jurisdictional dispute. It also tested how far states can regulate event contracts listed on federally supervised exchanges. That question carried direct consequences for prediction market operators, trading firms, and crypto-linked platforms.

Kalshi Wins Temporary Relief From Minnesota Ban

Menendez granted preliminary injunctions sought by the Commodity Futures Trading Commission, Kalshi, and Polymarket. Reuters reported that she viewed several challenged contracts as swaps under federal law. That classification placed those contracts within the federal regulator’s exclusive jurisdiction.

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