A federal judge in Minnesota issued a halt to the state’s planned ban on prediction markets just days before it was scheduled to take effect. District Judge Katherine Menendez granted the pause, determining that challengers to the ban—including the Trump administration, the Commodity Futures Trading Commission, and prediction market platforms Kalshi and Polymarket—are “likely to succeed on the merits” in their argument that the state ban is pre-empted by federal law.
The ruling followed lawsuits filed by multiple parties opposing Minnesota’s prediction market restrictions. The judge’s decision suggests that federal authority over prediction markets may supersede state-level regulations, though the case remains ongoing. The sources do not indicate material disagreement about the facts of the ruling, though they differ in their emphasis on which parties brought the challenge.
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