A federal judge has temporarily blocked Minnesota's ban on prediction markets, letting Kalshi and Polymarket keep operating in the state while a legal challenge plays out. The preliminary injunction, issued late Tuesday, stops enforcement of the state law that had barred these platforms from offering event-based contracts to Minnesota residents.
The court order
The judge sided with the companies' request for a temporary halt, ruling that the ban likely violates federal law or constitutional protections. The order is not a final decision on the merits but keeps the status quo while the court reviews the full challenge. Kalshi and Polymarket US can continue accepting users and trades from Minnesota for now.
What the ban covered
Minnesota's law targeted prediction markets—platforms where users bet on outcomes of events like elections, sports, or economic indicators. The state argued these markets amount to unregulated gambling and pose risks to consumers. The ban would have made it illegal for platforms to offer such contracts to Minnesota residents.
The companies' challenge
Kalshi, a federally regulated exchange, and Polymarket US, a crypto-based platform, sued the state, arguing the ban conflicts with federal commodities law and the First Amendment. They contend that prediction markets provide valuable information and should be treated like other financial instruments. The judge's injunction allows them to keep operating while the case proceeds.
What happens next
The court has not yet set a schedule for a full hearing on the permanent injunction or the underlying lawsuit. Until then, Minnesota residents can continue using Kalshi and Polymarket. The state could appeal the preliminary ruling, but no notice has been filed yet.
