Minnesota

New York has sued Kalshi, alleging the prediction-market platform offers sports and event wagers without a gaming license. The state is seeking to bar the company from operating what officials describe as an unlicensed gambling business, while pursuing restitution, damages and civil penalties.

A federal judge has granted a preliminary injunction blocking Minnesota’s prediction market ban from taking effect against Kalshi, Polymarket and the Commodity Futures Trading Commission. The court found the challengers are likely to succeed in arguing that federal commodities law preempts the state statute.

Kalshi and the wider prediction market sector are fighting state regulators over whether event contracts should be treated as derivatives or gambling. Recent developments in Nevada, Michigan, Ohio, Minnesota, North Carolina and New Jersey show a fast-moving legal map with major implications for the industry.