Kalshi Sues Minnesota Over Prediction Market Ban Taking Effect Aug. 1

Kalshi filed a lawsuit in the U.S. District Court for the District of Minnesota on May 29, challenging a state law that would prohibit prediction market platforms from operating. The ban is scheduled to take effect on Aug. 1, 2026.

The company argues that prediction markets fall under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC) and that Minnesota's law violates the U.S. Constitution's Supremacy Clause by conflicting with federal regulatory authority. Kalshi is seeking a temporary restraining order and preliminary injunction to block enforcement of the law while the case proceeds. The lawsuit names Governor Tim Walz, Attorney General Keith Ellison, and other state officials as defendants.