{"id":19516,"date":"2026-07-28T04:53:30","date_gmt":"2026-07-27T23:53:30","guid":{"rendered":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=19516"},"modified":"2026-07-28T04:53:30","modified_gmt":"2026-07-27T23:53:30","slug":"judge-blocks-minnesotas-first-in-nation-ban-on-prediction-markets-run-by-kalshi-polymarket","status":"publish","type":"post","link":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=19516","title":{"rendered":"Judge blocks Minnesota&#8217;s first-in-nation ban on prediction markets run by Kalshi, Polymarket"},"content":{"rendered":"<p><script>\r\n  atOptions = {\r\n    'key' : '644b717812d811d6a1c1fc5b6ccd6fa6',\r\n    'format' : 'iframe',\r\n    'height' : 90,\r\n    'width' : 728,\r\n    'params' : {}\r\n  };\r\n<\/script>\r\n<script src=\"https:\/\/www.highperformanceformat.com\/644b717812d811d6a1c1fc5b6ccd6fa6\/invoke.js\"><\/script>\r\n<br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/nypost.com\/wp-content%2Fuploads%2Fsites%2F2%2F2026%2F07%2Fkalshi-polymarket-tim-walz-minnesota.jpg?quality%3D90%26strip%3Dall%261785176640\" \/><\/p>\n<div>\n<p>A federal judge on Monday blocked Minnesota from enforcing a newly enacted law that made the state the first nationally to <a href=\"https:\/\/nypost.com\/2026\/05\/19\/business\/wall-street-regulator-sues-to-block-minnesotas-first-in-nation-ban-on-prediction-markets\/\">outright ban prediction markets<\/a> like those run by\u00a0Kalshi\u00a0and Polymarket.<\/p>\n<p>District Judge Katherine Menendez in Minneapolis issued a\u00a0<a href=\"https:\/\/fingfx.thomsonreuters.com\/gfx\/legaldocs\/jnvwzbbqwpw\/07272026minnesota.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">preliminary injunction<\/a>\u00a0at the behest of\u00a0Kalshi, Polymarket and the Commodity Futures Trading Commission after finding that federal law likely preempted the state law, which was set to take effect on Saturday.<\/p>\n<p>The companies, CFTC and Minnesota\u2019s attorney general did not immediately respond to requests for comment.<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>Gov. Tim Walz signed the measure into law\u00a0in May, making it a crime to operate, host or promote a prediction market in Minnesota. <span class=\"credit\">Mattie Neretin \u2013 CNP for NY Post<\/span><\/figcaption><\/figure>\n<p>The federal regulator and the two companies had sued after Democratic Governor Tim Walz\u00a0signed the measure into law\u00a0in May, making it a crime to operate, host or promote a prediction market in Minnesota.<\/p>\n<p>Such platforms, which allow users to profit from predictions on a wide range of real-world events including sports and elections, are at the center of a battle over the power of state gaming regulators to police the multibillion-dollar prediction market industry.<\/p>\n<aside class=\"single__inline-module aligncenter wp-block-nypost-editor-primary-tag\">\n<\/aside>\n<p>Minnesota\u2019s law directly targeted prediction markets, in contrast to other states that have in a series of court cases argued that the companies are running unlicensed wagering operations that run afoul of preexisting state gaming laws.<\/p>\n<p>In\u00a0Kalshi\u2019s case,\u00a0Massachusetts,\u00a0Michigan,\u00a0Nevada\u00a0and\u00a0Washington state\u00a0have secured court orders that would restrict its activities.<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>Minnesota\u2019s law directly targeted prediction markets, in contrast to other states that have in a series of court cases argued that the companies are running unlicensed wagering operations that run afoul of preexisting state gaming laws. <span class=\"credit\">REUTERS<\/span><\/figcaption><\/figure>\n<p>Under President\u00a0Trump\u2019s\u00a0administration, the CFTC has shared the companies\u2019 position that event contracts users can trade on their prediction markets fall exclusively under the agency\u2019s jurisdiction to regulate \u201cswaps,\u201d a type \u200bof derivative contract, and that states cannot regulate them.<\/p>\n<p>Menendez, who was appointed by Democratic President Joe Biden, agreed, saying there were several examples of event contracts hosted by\u00a0Kalshi\u00a0and Polymarket, both CFTC-regulated entities, that fit the legal definition of a \u201cswap.\u201d<\/p>\n<p>She stressed that at a later stage in the case she might issue a narrower injunction if she were to conclude that not every type of event contract listed on\u00a0Kalshi\u00a0and Polymarket fits that definition.<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>The CFTC has shared the companies\u2019 position that event contracts users can trade on their prediction markets fall exclusively under the agency\u2019s jurisdiction to regulate \u201cswaps,\u201d a type \u200bof derivative contract, and that states cannot regulate them. <span class=\"credit\">ZUMAPRESS.com<\/span><\/figcaption><\/figure>\n<p>\u201cBut given the unique nature of Minnesota\u2019s prediction market statute, the posture of these cases, and the imminent effective date of Minnesota\u2019s statute, a preliminary injunction maintaining the status quo until the merits of this case can be fully resolved is appropriate,\u201d she wrote.<\/p>\n<\/p><\/div>\n<script async=\"async\" data-cfasync=\"false\" src=\"https:\/\/pl30214220.effectivecpmnetwork.com\/9ab3d4df8a7e1a6171e16ddbf732cc19\/invoke.js\"><\/script>\r\n<div id=\"container-9ab3d4df8a7e1a6171e16ddbf732cc19\"><\/div>\r\n\n","protected":false},"excerpt":{"rendered":"<p>A federal judge on Monday blocked Minnesota from enforcing a newly enacted law that made the state the first nationally to outright ban prediction markets like those run by\u00a0Kalshi\u00a0and Polymarket. District Judge Katherine Menendez in Minneapolis issued a\u00a0preliminary injunction\u00a0at the behest of\u00a0Kalshi, Polymarket and the Commodity Futures Trading Commission after finding that federal law likely&#8230;<\/p>\n","protected":false},"author":1,"featured_media":19517,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2026\/07\/kalshi-polymarket-tim-walz-minnesota.jpg?quality=75&strip=all&1785176640&w=1200","fifu_image_alt":"","footnotes":""},"categories":[6],"tags":[],"class_list":["post-19516","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pics-news"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/19516","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19516"}],"version-history":[{"count":0,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/19516\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/media\/19517"}],"wp:attachment":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19516"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19516"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19516"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}