Kalshi and Polymarket Granted Preliminary Injunction Against Minnesota Prediction Market Ban

Odaily Planet Daily reports: On Monday, U.S. District Judge Katherine Menendez of the District of Minnesota ruled that Minnesota’s recent ban on prediction markets may conflict with the Commodity Exchange Act and granted a preliminary injunction to Kalshi, Polymarket, and the Commodity Futures Trading Commission (CFTC). Earlier this year, Kalshi, Polymarket, and the CFTC sued Minnesota, which had enacted a law criminalizing prediction market operators for offering such products within the state. The three parties argued that prediction market contracts are structured as “swaps,” and that the state law infringes upon the CFTC’s regulatory authority over these products. Judge Katherine Menendez stated in her ruling that the plaintiffs are likely to succeed on the merits at trial, demonstrating that the federal Commodity Exchange Act preempts the state law.