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Kalshi Sues Minnesota to Block First US Felony Ban on Prediction MarketsPrediction market platform Kalshi has filed a federal lawsuit to block a first-in-the-nation Minnesota law that would make opera

Kalshi Sues Minnesota to Block First US Felony Ban on Prediction MarketsPrediction market platform Kalshi has filed a federal lawsuit to block a first-in-the-nation Minnesota law that would make operating or advertising prediction markets a felony, escalating a nationwide fight over who regulates the fast-growing sector.
Key Takeaways:Kalshi sued the state of Minnesota on May 28 to block SF4760, a felony ban set to take effect August 1, 2026.
The CFTC filed its own suit against Minnesota within 24 hours of the bill’s May 18 signing.
More than a dozen states have moved against Kalshi; the case could decide who regulates the sector.
Minnesota’s First-in-Nation Felony BanKalshi, a federally regulated prediction market where users trade contracts on the outcome of real-world events, asked a federal court to strike down Minnesota’s SF4760, a law it says would criminalize its business in the state. Governor Tim Walz signed the measure on May 18, and it is set to take effect on August 1, 2026, making Minnesota the first U.S. state to treat the operation and advertising of prediction markets as a felony.



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