A federal judge in Minnesota has issued a preliminary injunction to halt the state’s upcoming ban on prediction markets. The ruling arrives just days before the legislation, signed by Governor Tim Walz, was scheduled to take effect on August 1.
Legal Challenge and Federal Oversight
The Commodity Futures Trading Commission initiated the lawsuit against the state measure, characterizing it as the "most aggressive" attempt to restrict market access. The legislation would have prevented residents from using platforms such as Kalshi and Polymarket. US District Judge Katherine Menendez determined that federal regulations likely supersede the state statute. She noted that preserving the current conditions remains appropriate while the court reviews the case.The decision follows a recent development in Nevada, where Kalshi agreed to suspend its local operations after reaching a settlement with the Nevada Gaming Control Board.