Kalshi Sues to Stop Minnesota From Enforcing America’s First Prediction Market Ban
Kalshi, the leading U.S. prediction market platform, has filed a federal lawsuit seeking to block Minnesota’s newly enacted ban on prediction markets, which criminalizes their creation, operation, or promotion starting August 1. The state claims these markets equate to gambling and should fall under state regulation, while Kalshi contends federal law, under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC), should apply. The Trump administration is supporting prediction market platforms in this dispute; the Department of Justice and CFTC have already sued Minnesota, asserting the law infringes on federal authority. Kalshi argues the state ban criminalizes activity that is federally legal. President Trump initially criticized prediction markets after a soldier allegedly used one for insider wagering but soon reversed his stance, expressing support for the industry. Trump’s son, Donald Trump Jr., advises and invests in major prediction market platforms, including Kalshi and Polymarket. Trump has publicly urged continued CFTC oversight, condemning states encroaching on federal regulation.
