Minnesota Called Prediction Markets Gambling — A Federal Judge Just Disagreed

Executive Briefing

• Blocks Minnesota's first-of-its-kind prediction market ban via preliminary injunction granted Monday
• Rules plaintiffs likely to succeed on federal preemption claims, citing CFTC's exclusive regulatory authority
• Injunction applies only to entities registered as designated contract markets with the CFTC
• Kalshi and Polymarket argued enforcement would cause irreparable harm to their national operations
• Minnesota had framed prediction markets as gambling, embedding the ban in a public safety bill
• Several other states, including Arizona and Nevada, are also pursuing restrictions on prediction markets