Minnesota Prediction Market Ban Halted by Federal Court Ruling
TLDRUS District Judge Katherine Menendez granted a preliminary injunction halting Minnesotas prediction market prohibitionThe order protects CFTC-regulated operators Kalshi and Polymarket USThe court determined Minnesotas statute likely violates the federal Commodity Exchange ActThe Commodity Futures Trading Commission joined as a co-plaintiff in the litigationThe temporary order remains effective pending final judgment Minnesotas attempt to prohibit prediction markets has been temporarily halted by a federal court, allowing platforms like Kalshi and Polymarket US to maintain operations in the state as legal proceedings continue. Kalshi and Polymarket Gain Temporary Legal Win as Court Blocks Minnesota Ban Reuters reported that a U.S. federal judge has blocked Minnesota from enforcing a new law that would have become the first state law in the country to directly ban prediction markets such as Kalshi and… pic.twitter.com/5EogYw9RHg — Wu Blockchain (@WuBlockchain) July 27, 2026 The preliminary injunction was granted Monday by US District Judge Katherine Menendez, who determined that federal commodities law likely supersedes Minnesotas regulatory attempt. Background of the Legal Challenge The Minnesota legislature enacted legislation that would prohibit the establishment, management, and promotion of prediction market platforms within state borders. The statute was scheduled to become enforceable this Saturday, with potential criminal consequences for violations. Following passage of the law, Kalshi, Polymarket US,









