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Judge blocks Minnesota from enforcing prediction market ban

The ruling hinged on whether specific prediction market contracts qualify as swaps under federal law, with the judge finding that not every contract does.

Reported · Written up by our desk · Regulation

A federal judge has issued a preliminary injunction preventing Minnesota from enforcing its recently enacted ban on prediction markets, a move that preserves market access while the legal challenge proceeds, The Block reports.

Decrypt similarly said the court order focused on how the state law applies to the underlying contracts. The judge concluded that not every prediction market contract necessarily counts as a swap under federal law.

As a result, Minnesota’s enforcement action was blocked for now, leaving Kalshi and Polymarket able to continue operating in the state while the dispute is litigated.

The decision is tied to the scope of the contracts at issue, according to Decrypt, which said the swap question is central to whether the ban can be enforced under federal standards.

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