Polymarket · New York · The Block
Kalshi’s turn: Prediction markets service sues Minnesota over law going into effect in August
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Kalshi has sued the state of Minnesota after Governor Tim Walz signed a law that bars prediction markets like Kalshi from operating in the state.
Key facts
- CFTC-registered exchanges have faced an onslaught of lawsuits seeking to limit Americans’ access to event contracts and undermine the CFTC’s sole regulatory jurisdiction over prediction markets
- On Wednesday in the U.S. District Court of the District of Minnesota, Kalshi sued Attorney General Keith Ellison, Walz and other government officials, accusing them of violating the Supremacy Clause
- Earlier this month, Walz signed a law prohibiting prediction market activities across the state, with an effective date of Aug. 1
- The CFTC, under Chair Michael Selig has said pointedly that prediction markets fall under the "exclusive jurisdiction" of the agency
Summary
On Wednesday in the U.S. District Court of the District of Minnesota, Kalshi sued Attorney General Keith Ellison, Walz and other government officials, accusing them of violating the Supremacy Clause, which gives federal law the upper hand in disputes with states. Earlier this month, Walz signed a law prohibiting prediction market activities across the state, with an effective date of Aug. 1. Prediction markets have surged in popularity over the past year with firms like Polymarket and Kalshi being valued at billions of dollars. The CFTC, under Chair Michael Selig has said pointedly that prediction markets fall under the "exclusive jurisdiction" of the agency.