A federal judge blocked Minnesota’s prediction market ban on July 27, days before its scheduled August 1 implementation. Minnesota became the first U.S. state to criminalize prediction market operations, punishable by up to five years in prison and a 10,000 dollar fine. The CFTC, joined by Kalshi and Polymarket, challenged the law arguing federal law preempts state attempts to ban platforms under federal oversight. This preliminary injunction does not resolve the underlying lawsuit but signals the court’s likely position on the merits. Other states like Arizona are watching, and political risk of further restrictions remains.
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