US judge temporarily blocks Minnesota prediction market ban
A federal judge temporarily blocked Minnesota from enforcing its new prediction market ban against CFTC-regulated platforms Kalshi and Polymarket US. The court found the companies were likely to succeed, at least partly, on claims that the Commodity Exchange Act preempts the state law. Several of their event contracts appeared to qualify as swaps, which would place them under CFTC jurisdiction on designated contract markets. Minnesota’s law, set to take effect Aug. 1, would have banned creating, operating, and advertising prediction markets and imposed criminal penalties for support. The injunction lets the platforms keep operating in Minnesota while the case continues, though the judge said it may later be narrowed because not every contract clearly qualifies as a swap.
