A federal judge has blocked Minnesota's new ban on prediction market platforms, halting a law that was set to take effect within days. The measure was aimed at services such as Kalshi and Polymarket and had been described as the first statewide prohibition of its kind in the US.
The ruling means the Minnesota prediction market ban will not be enforced for now while the legal fight continues. That keeps the two platforms from immediately facing the restrictions the state had planned to impose.
Prediction markets allow users to trade on the outcome of future events, and they have drawn growing scrutiny from regulators and lawmakers. Minnesota's effort stood out because it would have created a direct state-level ban on these platforms rather than waiting for broader federal action or court guidance.
For Kalshi, Polymarket, and the wider prediction market industry, the decision is an early legal win and a sign that the regulatory debate is far from settled. The case is likely to remain closely watched because it could influence how other states approach similar platforms.
