Federal Judge Blocks Minnesota's Prediction Market Ban Amid Legal Challenge
A federal judge has temporarily blocked Minnesota's ban on prediction markets, which was set to take effect on August 1, 2026. The law, passed with bipartisan support, aimed to make it a felony to host or advertise prediction markets in the state, citing potential addiction and economic harm to tribal nations. The ban is the first of its kind in the U.S. However, the federal Commodities Futures Trading Commission (CFTC), along with platforms Kalshi and Polymarket, filed a lawsuit against the state, arguing that the Commodity Exchange Act grants the CFTC exclusive jurisdiction over these markets. Judge Katherine Menendez issued a preliminary injunction, stating that the plaintiffs have shown a likelihood of success on the merits and a threat of irreparable harm. The injunction prevents the enforcement of the ban while the lawsuit is ongoing. 
