MN · Checked Oct. 21, 2026
Prediction market law in Minnesota
In litigation
Minnesota's 2026 law making prediction markets a felony is preliminarily enjoined as to CFTC-registered exchanges while challenges from the CFTC, Kalshi and Polymarket continue.
Minnesota enacted a felony ban on operating, facilitating or advertising prediction markets on sports, elections, pop culture and similar events, codified at Minn. Stat. § 609.7615 and effective Aug. 1, 2026. Gov. Tim Walz signed SF 4760 (ch. 97) on May 18, 2026, and the version in force comes from SF 3432 (ch. 118), approved May 26, 2026, which also repealed the parallel SF 4760 provisions. The United States and the CFTC sued on May 19, 2026, and Kalshi and Polymarket US filed their own federal suits. On July 27, 2026 Judge Katherine Menendez preliminarily enjoined enforcement against CFTC-registered exchanges, finding the law likely preempted in many respects, while warning that final relief could be narrower.
Timeline of state actions
Other development, Kalshi
Minnesota's attorney general signed an Ohio-led amicus brief, joined by 38 other states and DC, asking the U.S. Supreme Court to grant New Jersey's petition in Flaherty v. KalshiEX (No. 26-299).
Source: Ohio et al. amicus brief, U.S. Supreme Court No. 26-299
Court order
Judge Katherine Menendez preliminarily enjoined enforcement of the ban against CFTC-registered exchanges in challenges brought by the United States, Kalshi and Polymarket US, finding it likely preempted in many respects but noting final relief could be narrower.
Source: Legal Sports Report
Operator lawsuit, Kalshi
Kalshi sued Attorney General Keith Ellison, Gov. Walz and the state gambling enforcement director in the District of Minnesota, raising Supremacy Clause and First Amendment claims.
Source: The Block
Legislation
The governor approved SF 3432 (ch. 118). Its Article 6 creates Minn. Stat. § 609.7615, making it a felony to operate, facilitate or advertise prediction markets on sports, elections, pop culture, deaths and other listed events, effective Aug. 1, 2026, and repeals the SF 4760 version.
Other development
The United States and the CFTC sued Minnesota in federal court to stop the law from taking effect, arguing federal law gives the CFTC exclusive jurisdiction.
Source: Stateline / Minnesota Reformer
Legislation
The governor signed SF 4760 (ch. 97), an omnibus public-safety bill that included a prediction market ban; those provisions were later repealed and replaced by SF 3432.
Source: DeFi Rate
Resolved questions
- Yes
Judge Menendez preliminarily enjoined enforcement of the ban against the exchanges that sued, days before its Aug. 1 effective date, in the federal, Kalshi and Polymarket US cases. D. Minn. No. 0:26-cv-02661. Source: Legal Sports Report
Laws and bills
SF 3432 (2026 Minn. Laws ch. 118, art. 6)EnactedMay 26, 2026
Prediction markets offense (Minn. Stat. § 609.7615)
Makes creating, operating or facilitating a prediction market, and advertising one, a felony; covers sports, elections, legal actions, deaths, pop culture and other listed events; lets the state gambling director issue cease-and-desist orders; effective Aug. 1, 2026. Enforcement against CFTC-registered exchanges is preliminarily enjoined.
Source: revisor.mn.gov
SF 4760 (2026 Minn. Laws ch. 97, art. 8)EnactedMay 18, 2026
Omnibus public safety policy bill (earlier prediction market provisions)
Contained the first enacted version of the ban; its article 8, sections 1 to 3 were repealed by SF 3432 (ch. 118).
Source: revisor.mn.gov
Court cases
- KalshiEX LLC v. EllisonInjunction granted
- QCX LLC v. EllisonInjunction granted
- United States v. State of MinnesotaInjunction granted
- KalshiEX LLC v. Ellison et al. (exact caption not confirmed)
- Polymarket v. Minnesota officials (caption not confirmed)