First-in-the-nation law would have criminalized running prediction platforms
The order from Judge Menendez of the U.S. District Court for the District of Minnesota keeps the law on hold while the lawsuit proceeds. She wrote that allowing the ban to take effect would cause “irreparable harm” to the prediction-market operators, according to the Associated Press.
Minnesota’s statute was the first of its kind in the country. It would have criminalized not only the creation or operation of prediction markets but also any significant role in helping administer an activity connected to one. The law was scheduled to go live on Saturday, but Monday’s ruling blocks enforcement until the courts decide the underlying challenge.
The lawsuit pits the Trump administration — acting through the CFTC — against Minnesota over who has the authority to regulate platforms such as Kalshi and Polymarket. The CFTC is a party to the case alongside the two operators, and the central question before the court is whether federal oversight preempts the state ban.
The law remains blocked for the duration of the lawsuit.