A federal judge has temporarily blocked Minnesota’s planned ban on prediction markets, stopping the measure just days before it was set to take effect. The court issued a preliminary injunction Monday, preventing the state from enforcing what had been described as a first-of-its-kind restriction.
The ruling came after a wave of legal challenges tied to the Minnesota prediction market ban. According to the report, the Justice Department, the Commodity Futures Trading Commission, Polymarket and Kalshi were all involved in lawsuits connected to the dispute.
The decision means the state’s ban will not move forward for now while the broader legal fight continues. Preliminary injunctions are typically used to preserve the status quo as a court weighs the underlying claims, and this order gives prediction market companies temporary relief.
The case is now shaping up as a closely watched fight over how prediction markets should be regulated and how far states can go in restricting them. With federal agencies, private platforms and state officials all drawn into the matter, the Minnesota battle could have broader implications for the industry.
