Polymarket · Donald Trump · DOJ · U.S. · Decrypt
Kalshi Sues to Stop Minnesota From Enforcing America’s First Prediction Market Ban
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Kalshi has asked a federal judge to prevent Minnesota from implementing the nation’s first-ever prediction market ban, joining forces with President Donald Trump’s administration in a rapidly escalating regulatory battle against state governments.
Key facts
- On Tuesday, the president doubled down on that position, arguing in a social media post that the CFTC should continue to push for exclusive jurisdiction over prediction markets, and labeling state
- The Trump administration has aggressively come to the aid of prediction market platforms in this fight
- Trump’s son, Donald Trump Jr., is an advisor to both Kalshi and its chief competitor, Polymarket
- Come August, Kalshi “will be deemed a felon in Minnesota for offering certain event contracts on its federally authorized DCM that are entirely lawful under federal law—as confirmed by the federal
Summary
Kalshi sued Minnesota to block the state’s new law making prediction markets operations a felony. The lawsuit aligns with the Trump administration, whose DOJ and CFTC already sued Minnesota over the ban. President Trump has backed prediction markets publicly. In a lawsuit filed Wednesday, Kalshi—America’s top prediction market platform by trading volume—urged the U.S. District Court for the District of Minnesota to intervene and prevent the state from implementing a recently passed law that makes creating, operating, or promoting prediction markets a felony crime.