Kalshi sues Minnesota to block state ban on prediction markets, citing federal preemption amid CFTC actions

Kalshi filed a federal lawsuit asking a judge to block Minnesota’s recently passed law that would restrict most prediction market activity and impose criminal penalties on certain event-based contracts, seeking to prevent the ban from taking effect on August 1 ^{[1] [2] [3]}.

The company argues the markets fall under exclusive federal oversight—pointing to the Commodity Futures Trading Commission’s authority—and the suit comes amid related enforcement actions, including a CFTC case against Rhode Island; news outlets say the disputes could ultimately be resolved by the U.S. Supreme Court ^{[1] [4]}.

Kalshi’s request for an injunction will ask a federal court to resolve whether Minnesota may enforce the state ban or whether federal regulation preempts the law, setting a potential precedent for prediction-market oversight ^{[3] [4]}.