- Minnesota became the first US state to ban prediction markets, but a federal court blocked enforcement with a preliminary injunction just before the law took effect.
- The Trump administration and prediction platforms Kalshi and Polymarket sued Minnesota, arguing the state law conflicts with federal authority of the Commodity Futures Trading Commission (CFTC).
- The judge ruled that a total ban likely violates federal law because many event contracts qualify as 'swaps' under the Commodity Exchange Act, giving the CFTC exclusive jurisdiction.
- However, the state may still prohibit certain prediction market wagers, such as bets on the reality show Love Island USA, which do not meet the legal definition of swaps.