Minnesota loses first round against Kalshi, Polymarket

Minnesota’s prediction market ban remained blocked on Aug. 2, one day after the law was scheduled to take effect. Summary July 27 injunction keeps Kalshi and Polymarket operating while Minnesota’s preemption case continues in court. Walz barred state employees from using confidential information to trade prediction markets for private benefit. Fairshake reported $126.97 million cash on hand through June, amplifying crypto’s broader election influence nationwide. U.S. District Judge Katherine Menendez granted a preliminary injunction on July 27 to the Commodity Futures Trading Commission, Kalshi and Polymarket US. The order prevents Minnesota from enforcing its new statute against CFTC-registered designated contract markets while three related cases continue. The Minnesota law would make it a felony for businesses to create, operate or intentionally support covered prediction markets. It also reaches certain data providers, payment services and advertisements. Menendez found that the plaintiffs were likely to succeed on at least part of their federal preemption claim because many event contracts may qualify as swaps under the Commodity Exchange Act. Court win protects federal market...