US judge temporarily blocks Minnesota prediction market ban

Written by Ezra Reguerrastaff writerReviewed by Bryan O’Sheastaff editorWritten by Ezra Reguerrastaff writerReviewed by Bryan O’Sheastaff editorUS judge temporarily blocks Minnesota prediction market ban Latest NewsPublishedJul 28, 2026<!–>

The preliminary injunction allows Kalshi and Polymarket US to continue operating in Minnesota while the court considers their challenge to the state law.

–>

A US federal judge has temporarily blocked Minnesota from enforcing its new prediction market ban against CFTC-regulated platforms Kalshi and Polymarket US.

According to a July 27 court order granting the plaintiffs’ motions for preliminary injunctions, US District Judge Katherine Menendez found that the plaintiffs were likely to succeed, at least in part, on claims that the Commodity Exchange Act preempts the Minnesota statute.

The judge said several event contracts offered by the platforms appeared to qualify as swaps, giving the CFTC exclusive jurisdiction over transactions involving those contracts on designated contract markets. 

Minnesota’s law, which was scheduled to take effect Aug. 1, would prohibit the creation, operation and advertising of prediction markets and impose criminal penalties for supporting them.

The preliminary injunction allows the platforms to continue operating in the state while litigation proceeds. 

However, the judge cautioned that the injunction could eventually be narrowed because the plaintiffs had not shown that every event contract listed by Kalshi and Polymarket US met the legal definition of a swap. 

The order said a preliminary injunction was appropriate to maintain the status quo until the merits of the case could be fully resolved.

Related: Prediction markets legal battles heat up in Minnesota, Rhode Island

<!–>

Subscribe to daily byte-sized crypto news from Cointelegraph

[–> Subscribe Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

• Law
• United States
• Prediction Markets
• Regulation

More on the subject

<!–>[–>4 hours agoEzra ReguerraNews Brief<!–>[–>

<!–>[–>17 hours agoHelen PartzNews Brief<!–>[–>

<!–>[–>20 hours agoHelen Partz

<!–>[–>4 hours agoEzra ReguerraNews Brief<!–>[–>

<!–>[–>17 hours agoHelen PartzNews Brief<!–>[–>

<!–>[–>20 hours agoHelen Partz