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.

Prepared by Emily Rhodes and reviewed by editorial team.