Kalshi Sues Minnesota Over Prediction Market Ban Taking Effect August 1

According to The Block, Kalshi filed a lawsuit against Minnesota officials on Wednesday in the U.S. District Court of the District of Minnesota, challenging a state law that prohibits prediction market operations effective August 1. Kalshi argued that the law violates the Supremacy Clause, which grants federal law priority over state law. The platform claims the ban would irreparably damage its viability as a multi-state derivatives exchange and force costly technological solutions to restrict access in Minnesota.

The CFTC and Department of Justice launched similar suits against the state within 24 hours of Governor Tim Walz signing the law. Kalshi is seeking a temporary restraining order and injunction to block enforcement. CFTC Chair Michael Selig has stated the agency has exclusive jurisdiction over prediction markets, describing state restrictions as a "power grab" that ignores federal law and decades of precedent.