Polymarket Accuses Kalshi of Espionage and Challenges Minnesota Prediction‑Market Ban

Polymarket has lodged a public accusation that rival prediction‑market operator Kalshi engaged in corporate espionage. In a New York Post report, Polymarket said it compiled an internal dossier – dubbed “The Imitators” – documenting roughly a dozen incidents where Kalshi allegedly copied product launches and may have surveilled Polymarket’s SoHo offices. The firm tinted its office windows amid fears that Kalshi’s backer Paradigm could view its screens. Kalshi called the claims “delusional” and “laughable” and denied any wrongdoing.

Separately, Polymarket filed a federal lawsuit against the state of Minnesota, joining the CFTC and Kalshi in challenging the state’s new law (SF 3432) that criminalizes the operation, facilitation, advertising and data services for prediction markets. The complaint argues that the statute is pre‑empted by federal law under the Commodity Exchange Act and infringes First‑Amendment rights. The challenge seeks to block the law that would take effect on Aug. 1 and could expose operators to felony penalties, placing Minnesota at the centre of a broader national dispute over state regulation of federally‑regulated event‑contract markets.