The U.S. Commodity Futures Trading Commission on Tuesday filed a lawsuit seeking to block Minnesota from enforcing a newly enacted law that made the state the first nationally to outright ban prediction markets like those run by Kalshi and Polymarket.
The federal regulator filed the lawsuit a day after Minnesota Governor Tim Walz, a Democrat, signed into law a measure that starting on August 1 would make it a crime to operate, host or promote a prediction market in the state.
Such platforms, which allow users to profit from predictions on events such as sports and elections, are at the center of a battle over the power of state gaming regulators to police the multi-billion-dollar prediction market industry.