Kalshi, Polymarket Score Win as Judge Blocks Minnesota Prediction Market Ban—For Now
A federal judge blocked Minnesota from enforcing SF 3432, the first state law to criminalize prediction markets, and granted a preliminary injunction to Kalshi, Polymarket, and the CFTC before the statute’s effective date. U.S. District Judge Katherine Menendez said the plaintiffs are likely to win on express-preemption grounds and would face irreparable harm. The injunction covers exchanges registered with the CFTC as designated contract markets and lasts until the merits are decided. She said preemption depends on whether the contracts count as “swaps” under the Commodity Exchange Act: markets tied to Senate races, the World Cup, or the Strait of Hormuz likely qualify, while entertainment-style markets may not. Because the CFTC’s challenge was facial, she found the law may not be invalid in all applications but still preserved the status quo. Minnesota disputed the ruling and argued the platforms can comply federally while limiting offerings in the state.
