Kalshi sues Minnesota over prediction ban
Kalshi has sued Minnesota to block the states prediction market ban set to take effect on August 1.Kalshi filed a federal lawsuit against Minnesota over its new prediction market ban law.The company argues the Commodity Exchange Act gives the CFTC exclusive jurisdiction over event contracts.Minnesotas law would make operating a prediction market a felony from August 1. Kalshi has filed a federal lawsuit against Minnesota to block the states new prediction market ban. The law would make running an event contract platform in the state a felony from August 1. The suit escalates a national fight over who regulates event contracts. Kalshis complaint, filed in federal court and documented by Courthouse News, names Attorney General Keith Ellison, Governor Tim Walz and Alcohol and Gambling Enforcement Director Jon Anglin as defendants. What Minnesotas law does Governor Walz signed SF 3432 into law on May 26, repealing and replacing earlier prediction market provisions in SF 4760 and folding the new measure into the states broader public safety package. The law bans operating any market offering certain event contracts. Kalshi argues the Commodity Exchange Act gives the CFTC “exclusive jurisdiction” over event contracts, and that Minnesotas statute “impermissibly usurps” that authority by banning federally designated contract market activity.