Minnesota law banning prediction market wagers put on hold
Published in News & Features
MINNEAPOLIS — Prediction market platforms Kalshi and Polymarket notched an early legal victory Monday in fighting a state law meant to ban Minnesotans from making certain wagers.
U.S. District Judge Katherine Menendez granted a preliminary injunction that pauses the state law banning the markets temporarily while legal challenges brought by the tech firms and the Commodity Futures Trading Commission wind through the courts.
The ruling effectively allows the platforms to continue operating for the time being while the legal battle progresses.
Prediction market wagering has exploded in popularity, allowing users to put real money on outcomes like the weather, sports or pop culture. That has put the sites in conflict with state gambling laws, though the companies and their regulator say the wagers should be regulated as short-term investments, not betting.
Minnesota’s law, passed earlier this year, would have rendered a swath of activity on the platforms a felony.
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