Judge Halts Minnesota Ban on Prediction Markets

A US judge temporarily blocked Minnesota’s prediction market ban, allowing Kalshi and Polymarket US to operate while litigation continues.

Judge Halts Minnesota Ban on Prediction Markets

DOGE

$0.07000

3.99%

TRX

$0.3242

2.18%

LINK

$8.36

4.94%

ZEC

$478.90

4.99%

ADA

$0.1554

6.01%

XRP

$1.05

4.37%

ETH

$1,883.19

3.70%

BTC

$63,484.85

2.86%

XMR

$341.40

2.84%

BNB

$565.75

1.46%

XLM

$0.1717

5.50%

SOL

$73.36

3.93%

HYPE

$56.30

6.59%

Written by

Ezra Reguerra

staff writer

Reviewed by

Bryan O'Shea

staff editor

Written by

Ezra Reguerra

staff writer

Reviewed by

Bryan O'Shea

staff editor

US judge temporarily blocks Minnesota prediction market ban

Latest News

Published

Jul 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

Zimbabwe admits seven fintech projects to regulatory sandbox

1 hour ago

Ezra Reguerra

News Brief

Binance disappears from Google Play in certain EU countries

15 hours ago

Helen Partz

News Brief

BNY Mellon unit joins MiCA register as ESMA adds 15 providers

18 hours ago

Helen Partz

Zimbabwe admits seven fintech projects to regulatory sandbox

1 hour ago

Ezra Reguerra

News Brief

Binance disappears from Google Play in certain EU countries

15 hours ago

Helen Partz

News Brief

BNY Mellon unit joins MiCA register as ESMA adds 15 providers

18 hours ago

Helen Partz