The primary issue in the lawsuit involves the extent to which federal law grants the CFTC sole jurisdiction over regulation of contracts involving prediction markets. While Judge Menendez indicated that Minnesota Statute Section 325F.68(2)(a) is probably preempted in some ways, she also noted that there may be other circumstances under which such statute remains viable. Kalshi and Polymarket stated that enforcing the ban on prediction markets would severely impact their operation. Prediction markets were banned in Minnesota by way of inclusion into a broad-based public safety bill passed by the state legislature. The legislature determined that prediction markets constituted a type of gambling.