A federal judge blocks Minnesota’s enforcement of a state law that criminalizes prediction markets, granting Kalshi and Polymarket a temporary win. According to reporting, the ruling finds Minnesota’s ban would likely conflict with the federal Commodity Exchange Act, which governs certain derivatives and related trading. The decision is framed as a preliminary injunction rather than a final ruling, leaving the ultimate outcome open.
The judge’s reasoning turns on how particular prediction-market contracts are treated under federal law. In particular, the order addresses whether the contracts at issue qualify as “swaps” under the Commodity Exchange Act. The judge concludes that not every contract necessarily falls within that federal category, which affects whether the state can apply its criminal prohibition. As a result, Minnesota’s ability to enforce the ban is limited at this stage.
The case continues, with further legal steps required before a definitive determination on the law’s legality under federal statutes is reached.
