Kalshi Sues Minnesota Over August 1 Prediction Market Ban

9 articles · Updated · KSTP · May 29

Federal court filings challenge Minnesota's SF 3432, a law signed this month that would make operating or advertising prediction markets a felony starting Aug. 1.
Kalshi argues the state is intruding on the CFTC's exclusive jurisdiction over event contracts traded on designated contract markets, framing the ban as preempted by federal oversight.
Minnesota officials defended the restrictions on public-harm grounds, with Attorney General Keith Ellison saying prediction markets are addictive and disproportionately harm young and low-income residents.
The suit extends a broader clash over state limits on prediction markets, with the Trump administration already suing Arizona, Connecticut, Illinois and New York over similar bans.

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