Minnesota’s prediction market ban enjoined

MINNEAPOLIS — A federal court in Minnesota granted Polymarket, Kalshi and the federal government’s motions for a preliminary injunction halting implementation of Minnesota’s ban on prediction markets. They are likely to succeed in their claims that the ban is preempted by the federal Commodity Exchanges, which gives the federal government exclusive jurisdiction over regulation of prediction markets and “swaps.” The judge notes some contracts offered by the prediction markets likely do not fall under the statutory definition of swaps, though, so any permanent injunction will be much narrower.