Federal Judge Blocks Minnesota Prediction Market Ban Days Before Enforcement
A federal judge blocked Minnesota from enforcing a law criminalizing online prediction markets, ruling that the CFTC and exchanges including Kalshi and Polymarket are likely to succeed on their lawsuit challenging the ban just days before the measure takes effect.
Judge Menendez grounded the decision in a federal preemption claim, determining that Congress granted the CFTC exclusive jurisdiction over the event contracts traded on the platforms. The ruling stems from a lawsuit filed by the Justice Department and the Commodity Futures Trading Commission alongside the companies, halting state enforcement action pending a final verdict on the federal regulatory framework.
From the sources (4 posts)
@scotus_wire🚨 A federal judge has blocked Minnesota from enforcing its new law that criminalizes many online prediction markets, ruling that Kalshi, Polymarket, and the CFTC are likely to succeed on the merits of their lawsuit.
@scotus_wireJudge Menendez found Congress gave the CFTC "exclusive jurisdiction" over many event contracts traded on federally regulated exchanges. Because Minnesota's law would criminalize activity the CFTC is authorized to oversee, the court found th
@moreperfectusBREAKING: A federal judge has ruled in favor of Kalshi, who sued to block a Minnesota law that was passed to ban prediction markets in the state.
@polltracker2024NBC News: Federal judge blocks Minnesota’s prediction market ban days before it takes effect The ruling follows lawsuits by the Justice Department, the Commodity Futures Trading Commission, Polymarket and Kalshi.