Judge blocks first state law that would have banned prediction markets
Judge may allow Minnesota to ban some types of bets, but not all of them.
Minnesota's attempt to ban prediction markets was thwarted by a federal court injunction just days before the ban was set to take effect. The state's legal challenge against prediction markets, seen as gambling by lawmakers, faced opposition from the US Commodity Futures Trading Commission (CFTC) and major platforms Kalshi and Polymarket.
The Trump administration joined the suit, leading to a consolidated ruling that imposed a preliminary injunction blocking the law set to go into effect on August 1. The central legal question revolves around whether event contracts in prediction markets are categorized as "swaps," a classification under federal regulation by the CFTC.
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