Minnesota’s first-in-the-nation law banning prediction markets is halted in federal court

HARRISBURG, Pa. (AP) — A federal judge has temporarily blocked Minnesota’s law banning prediction markets, which was set to take effect Saturday (August 1, 2026). The decision marks a clash between President Donald Trump’s administration and states over regulation. U.S. District Judge Katherine Menendez found that the U.S. Commodity Futures Trading Commission, Kalshi and Polymarket are likely to succeed in their challenge. The law would have criminalized creating or operating prediction markets. Kalshi, Polymarket and the CFTC argue federal law gives the CFTC exclusive jurisdiction. Minnesota Attorney General Keith Ellison insists prediction markets are gambling and plans to defend the state’s law.