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Minnesota Prediction Markets Ban Blocked by Federal Judge
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A federal judge blocked Minnesota from enforcing a first-in-the-nation ban on prediction markets on July 27, 2026, ruling that federal law likely preempts the state’s restrictions on platforms including Kalshi and Polymarket.
The CFTC, the Justice Department (DOJ), Kalshi, and Polymarket jointly sued Minnesota, arguing the Commodity Exchange Act preempts the state’s gambling law.
More than a dozen U.S. states have tried restricting prediction markets under existing anti-gambling laws, with mixed results in court.
U.S. District Judge Katherine Menendez granted a preliminary injunction sought by the Commodity Futures Trading Commission (CFTC), Kalshi, and Polymarket, halting a Minnesota law signed by Governor Tim Walz in May.
State-vs-Federal Battle WidensMinnesota Attorney General Keith Ellison said the state would keep defending the law, arguing prediction markets amount to gambling.