Kalshi sues Minnesota to block prediction market ban!

Prediction market platform Kalshi has filed a federal lawsuit against Minnesota, seeking to block a new state law signed by Governor Tim Walz that makes it a crime to operate, host, or promote prediction markets starting August 1. The filing closely follows a May 19 motion by the CFTC itself, which argued the legislation unconstitutionally criminalises activity already governed by federal regulators.

Kalshi's core legal argument rests on the Supremacy Clause: the Commodity Exchange Act grants the CFTC exclusive jurisdiction over derivatives traded on designated contract markets, meaning Minnesota's law is preempted by federal authority. The platform also challenges the advertising ban as a First Amendment violation. Kalshi has already secured preliminary injunctions against similar enforcement attempts in New Jersey and Arizona.