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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 banning most prediction markets from operating and advertising in the state, just days before it was set to take effect.
- The law, passed in May, made it a felony to run such markets locally, but the Commodity Futures Trading Commission (CFTC) and prediction market companies Kalshi and Polymarket challenged it, arguing federal regulation preempts state law.
- U.S. District Judge Kate M. Menendez granted a preliminary injunction, citing irreparable harm to the companies, and paused the law until a final decision is reached.
- Kalshi and Polymarket allow users to bet on various outcomes, including sports and reality TV, and have grown rapidly, attracting billions in trades and sparking regulatory and ethical concerns about insider trading and gambling addiction.
