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[BUSINESS] · United States · 2 sources

Part of situation: US prediction markets expand promos amid regulatory pressure (123 clusters)

Kalshi files lawsuit against Minnesota over historic prediction‑market felony ban

Kalshi Minnesota felony ban prediction markets CFTC lawsuit federal jurisdiction

Prediction‑market platform Kalshi has filed a federal lawsuit to block Minnesota’s new law that would criminalize the operation and advertising of prediction markets as a felony. The legislation, signed by Governor Tim Walz on May 18, is set to take effect on August 1, 2026, making Minnesota the first U.S. state to impose a felony ban on such platforms.

Kalshi argues that prediction markets are federally regulated derivatives overseen by the Commodity Futures Trading Commission (CFTC) and that the state law violates the Supremacy Clause and infringes on the CFTC’s exclusive jurisdiction. The company is seeking a temporary restraining order and a preliminary injunction, while the CFTC has filed its own suit to halt the law. The outcome could shape how states address prediction‑market platforms nationwide.

Sources

Kalshi Sues Minnesota to Block First US Felony Ban on Prediction Markets [bitcoinethereumnews.com]
2 months ago
Kalshi Sues Minnesota Over New Prediction Market Ban [coinpaper.com]
2 months ago