Kalshi, a prediction markets platform, is suing the state of Minnesota in federal court to prevent officials from enforcing a newly enacted law that takes effect in August. Minnesota’s Governor Tim Walz signed the measure, which is set to begin on Aug. 1 and makes it a crime to advertise and operate prediction market platforms in the state. Kalshi asks the court for an order blocking the law before it goes into force.
The lawsuit argues that Minnesota’s ban conflicts with federal regulation and infringes on constitutional protections. Multiple reports frame the dispute as part of a broader legal fight over prediction market oversight, including similar action involving the Commodity Futures Trading Commission (CFTC). Courthouse News also characterizes Kalshi’s suit as joining other efforts in the regulatory and legal conflict over “event contracts,” contending that Minnesota’s restrictions violate the U.S. Constitution’s supremacy clause.
Other coverage indicates Minnesota is already facing additional related legal challenges, including a separate suit by Polymarket. Together, the cases are described as increasing legal pressure on the state as it prepares to defend the statute.
