Judge blocks first state law that would have banned prediction markets

A federal court blocked Minnesota's attempt to become the first U.S. state to outright ban prediction markets, issuing a preliminary injunction just days before the prohibition was set to take effect. Ars Technica reports the state had enacted the ban in May, viewing prediction markets as gambling. However, the Trump administration and the two largest prediction platforms, Kalshi and Polymarket, challenged the law in court. The central legal dispute hinges on whether these markets fall under the exclusive regulatory authority of the U.S. Commodity Futures Trading Commission—an argument the federal judge apparently found compelling, at least for now. Minnesota isn't necessarily locked out from regulating some types of prediction-market wagers down the line.

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