Judge Blocks Minnesota's Aug. 1 Prediction Market Ban as Federal Pre-emption Challenge Advances
Updated
Updated · FOX 9 Minneapolis-St. Paul · Jul 27
Judge Blocks Minnesota's Aug. 1 Prediction Market Ban as Federal Pre-emption Challenge Advances
3 articles · Updated · FOX 9 Minneapolis-St. Paul · Jul 27
Summary
A federal judge issued a preliminary injunction stopping Minnesota from enforcing its prediction market ban before the Aug. 1 start date, preserving the status quo until the cases are decided.
The challenge came from the CFTC, Kalshi and Polymarket, which argue federal law governs derivatives and futures markets and that Minnesota cannot bar CFTC-regulated event contracts.
The companies also say the law's advertising ban violates the First Amendment, while federal officials warned its wording could sweep in weather-linked contracts used by farmers to hedge crop risks.
Minnesota Attorney General Keith Ellison said the state still views prediction markets as predatory gambling and will continue defending the law signed by Gov. Tim Walz in May.