MPR News- Judge Katherine Menendez granted a preliminary injunction on July 27, 2026, blocking Minnesota's law that bans prediction markets from taking effect on August 1.
- The Commodity Futures Trading Commission (CFTC) filed a lawsuit in May against Minnesota's law, arguing it violates federal jurisdiction over prediction markets.
- The Minnesota law, signed by Gov. Tim Walz, explicitly outlaws wagers on various topics, including sports and popular culture events.
- The law represents the most aggressive move by a state to shut down CFTC-regulated markets and undermine federal regulations established over 50 years ago.
- Polymarket argued that the law would disrupt a nationally uniform market and violate First Amendment rights.
- Minnesota's Attorney General characterized prediction markets as gambling and a public health issue.
A federal judge has granted a preliminary injunction against Minnesota's ban on prediction markets, which was set to take effect on August 1. U.S. District Judge Katherine Menendez ruled that the law likely violates federal jurisdiction, allowing platforms like Kalshi and Polymarket to operate in the state.127
The Commodity Futures Trading Commission (CFTC) filed a lawsuit in May, arguing that the Minnesota law undermines federal regulations established over 50 years ago. Menendez noted that the plaintiffs demonstrated a likelihood of success in their claims, stating they would suffer irreparable harm if the ban were enforced.34
The Minnesota law, signed by Governor Tim Walz, categorizes prediction markets as gambling, thus embedding the ban in a public safety bill. However, Menendez highlighted that the law may not be entirely preempted, suggesting that some applications could still be valid.8
In her ruling, Menendez emphasized that the CFTC has exclusive jurisdiction over event contracts, which include various topics such as sports and weather. The CFTC's Chairman, Michael S. Selig, criticized the law, stating it would criminalize lawful operators overnight. Meanwhile, Minnesota Attorney General Keith Ellison expressed disagreement with the ruling and plans to continue defending the state's law.
Kalshi and Polymarket welcomed the ruling, which allows them to maintain their operations in Minnesota while the litigation proceeds.
“Judge Menendez ruled that the plaintiffs, including the CFTC, demonstrated a likelihood of success in their claims against the ban, which was set to take effect on August 1. Minnesota Attorney General Keith Ellison expressed disagreement with the ruling and plans to continue defending the state's law, which characterizes prediction markets as gambling.”
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