Minnesota Halts Enforcement Against Kalshi and Polymarket Prediction Markets

Federal judge issues preliminary injunction suspending state bans on prediction markets, citing potential conflict with federal Commodity Exchange Act authority.

Woofun AI reports that a federal judge in Minnesota has issued a preliminary injunction halting enforcement of state laws banning prediction markets operated by Kalshi and Polymarket. The ruling stems from a lawsuit filed by the platforms and the CFTC, which argued that state restrictions infringe upon federal authority to regulate event contracts structured as "swaps" under the Commodity Exchange Act. The court determined that the plaintiffs were likely to succeed on their priority claims and that continued enforcement would cause irreparable harm, maintaining the suspension until a final decision is reached.