Overview
- A U.S. district judge issued a preliminary injunction on July 27 that bars Minnesota from enforcing its law criminalizing prediction markets while lawsuits proceed.
- The order shields exchanges registered as designated contract markets, including Kalshi and Polymarket US, from the state ban so they can continue trading in Minnesota for now.
- Judge Katherine Menendez found many event contracts likely meet the federal definition of “swaps,” which gives the CFTC exclusive jurisdiction, but she said some wagers—for example certain pop‑culture bets—may fall outside that definition.
- The CFTC has separately tightened review rules, warning exchanges not to use broad template self‑certifications and requiring contract‑level disclosures as it pursues rulemaking on which event contracts it may limit.
- The injunction preserves the status quo but the case could be narrowed on remand, appealed, or reach higher courts, and states including Minnesota say they will continue to defend local gambling protections.