Kalshi Sues Minnesota Over Prediction Market Ban, Backed by Trump Administration
Kalshi, the leading U.S. prediction market platform, has filed a lawsuit against Minnesota to block a new law that makes operating prediction markets a felony. The law, signed by Governor Tim Walz and effective August 1, is the first state-level ban on prediction markets. Kalshi argues the ban penalizes federally permissible activity regulated exclusively by the CFTC. The lawsuit aligns with the Trump administration, which has already sued Minnesota over the law through the DOJ and CFTC. President Trump has publicly supported prediction markets, and his son, Donald Trump Jr., advises Kalshi and Polymarket. The case highlights a broader regulatory conflict between states and federal authorities over prediction markets, with platforms claiming federal jurisdiction and states citing gambling laws. Kalshi seeks a federal injunction to prevent enforcement of the Minnesota ban.
Key facts
- Kalshi sues Minnesota to block state law making prediction markets a felony.
- Trump administration joins fight with DOJ and CFTC lawsuits against Minnesota.
- President Trump backs prediction markets; son Donald Trump Jr. advises Kalshi and Polymarket.
- Kalshi argues federal law supersedes state ban, citing CFTC exclusive jurisdiction.
- Minnesota law set to take effect August 1, 2025.