Minnesota court halts prediction market ban enforcement
PUBLISHED Jul 28, 2026, 7:13 AM ET
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A U.S. federal court in Minnesota has issued a preliminary injunction blocking the state’s planned ban on digital prediction markets, according to a ruling by U.S. District Judge Katherine Menendez. The case was brought by prediction platforms Kalshi and Polymarket US, together with the Commodity Futures Trading Commission (CFTC). The judge found that Minnesota could not unilaterally criminalize activity conducted on federally regulated digital asset and event contract platforms. The decision reinforces that exchanges designated as contract markets fall under exclusive federal oversight. The ruling, delivered just days before the state law was to take effect, averts immediate criminal exposure for these platforms.
By Mahnoor A. | JQJO News
Timeline of Events
- Earlier this year Minnesota passes prediction market restrictions
- Recently state law designated operations as felony offenses
- Days before implementation, firms file federal challenge
- This week Judge Menendez hears injunction arguments
- This week court grants preliminary injunction blocking enforcement
- Immediately platforms avoid sweeping criminal liability exposure
- Going forward federal oversight reaffirmed over contract markets
- Next months case proceeds toward full merits determination
News Intelligence
- If you've ever used digital prediction markets, this ruling is key. Minnesota's law could have made it a felony to participate. Now, that's on hold. Check if your platform is federally regulated to ensure you're on the right side of the law.
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