A federal judge blocks Minnesota’s newly enacted ban on prediction markets that operate through Kalshi and Polymarket, preventing the law from taking effect as scheduled. The measure, signed by Gov. Tim Walz in May, makes it a crime to operate, host, or promote prediction markets in Minnesota.
The decision comes after a series of lawsuits challenging the ban. According to multiple outlets, District Judge Katherine Menendez pauses the law and indicates that the challengers are likely to succeed on key legal arguments. The plaintiffs, including Kalshi and Polymarket, argue Minnesota’s rules are preempted by federal law. The case also includes participation by federal agencies, including the Justice Department and the Commodity Futures Trading Commission.
NBC News reports that the judge’s ruling is issued days before the ban was set to roll out, and the court order stops enforcement while the legal challenge proceeds. The outlets also describe the decision as a significant setback for Minnesota’s effort to restrict prediction markets at the state level, at least temporarily.
