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Minnesota Judge Blocks First State Ban on Prediction Markets
The New York Times • • business
Key Points:
- A federal judge blocked a new Minnesota law that would have banned most prediction markets from operating and advertising in the state, siding with the Commodity Futures Trading Commission (CFTC) and two prediction market companies, Kalshi and Polymarket.
- Minnesota's law, passed in May, made it a felony for most prediction markets to operate locally, but the companies and the CFTC argued that such platforms fall under federal regulation, not state law.
- U.S. District Judge Kate M. Menendez issued a preliminary injunction preventing the law from taking effect, citing potential irreparable harm to the companies, and the law will remain suspended pending a final court decision.
- Kalshi and Polymarket have gained significant popularity by allowing users to bet on diverse outcomes, including sports and reality TV, attracting billions in trades but also raising concerns about manipulation and gambling addiction risks.
