Are Prediction Markets Legal in Minnesota?

Last verified: 2026-07-15

Banned Scope: Prediction markets generally

A statutory ban is on the books in Minnesota

Minnesota has enacted a statute banning prediction markets outright — but check the effective date and any pending injunction below before assuming the ban is already in force. A signed law is not automatically an enforced one.

This is not legal advice. Prediction-market legality is contested and changes quickly. This page reflects publicly reported facts as of the last-verified date above and links to a primary or trade-press source below. Consult a licensed attorney in Minnesota and check each platform's own current state-availability page before trading.

What This Means for Kalshi vs. Polymarket in Minnesota

Unlike most state disputes, the action in Minnesota is not limited to sports contracts — it covers prediction-market contracts broadly, which means both Kalshi and Polymarket (and their non-sports contract lines) are affected in Minnesota, not just sports betting-adjacent products. Kalshi and Polymarket US are both CFTC-regulated exchanges, and neither has a legal advantage over the other in this dispute — state actions in this category name multiple platforms at once, not one company exclusively.

The Full Picture in Minnesota

Gov. Tim Walz signed SF 4760 (May 18, 2026), making Minnesota the first US state to enact an outright ban on prediction markets — a felony to operate, host, or promote one, not limited to sports contracts. The ban is scheduled to take effect Aug. 1, 2026. The CFTC and DOJ sued the next day seeking to enjoin it; a federal judge heard arguments July 2, 2026 and had not ruled as of this writing, meaning the law is still on track to take effect unless the court intervenes first.

Source: MinnLawyer — CFTC sues to block ban Last verified: 2026-07-15

Why Is This Even Contested? The Federal-vs-State Fight

Prediction markets sit at the intersection of two legal regimes that currently disagree. Kalshi and Polymarket US register their contracts with the CFTC as swaps or event contracts on a federally designated exchange, and argue that federal law preempts conflicting state gambling law. State gaming regulators counter that sports-related contracts — betting on who wins a game, a point spread, or a player prop — are functionally sports betting, which most states require a separate license to offer. Federal appellate courts are currently split: the Third Circuit ruled for Kalshi on preemption grounds (April 6, 2026), while a federal judge in the Southern District of New York ruled against Kalshi on the same underlying question (July 8, 2026). This is genuinely unresolved law, not a settled "CFTC means legal everywhere" fact — treat any claim that federal registration alone guarantees legality in every state with skepticism.

The dispute or restriction covers prediction markets broadly, not just sports contracts.

Minnesota-Specific Timeline

Entries from our full regulatory timeline that specifically reference Minnesota.

2026-05-18

Minnesota becomes the first state to ban prediction markets outright

Gov. Tim Walz signs SF 4760, making operating, hosting, or promoting a prediction market a felony in Minnesota. The ban is not sports-specific — it covers prediction markets generally — and is scheduled to take effect Aug. 1, 2026.

Source: MinnLawyer — CFTC sues to block ban
2026-05-19

CFTC and DOJ sue Minnesota within 24 hours of the ban being signed

The Trump administration’s CFTC, joined by the DOJ Civil Division, sues Minnesota seeking a preliminary injunction against the new ban — the agency’s sixth state lawsuit in seven weeks.

Source: CFTC — press release
2026-06-24

CFTC sues Kentucky, its ninth state lawsuit

The CFTC sues Kentucky, bringing to nine the number of states it has sued directly: Arizona, Connecticut, Illinois, New York, New Mexico, Minnesota, Rhode Island, Wisconsin, and Kentucky.

Source: Eastern Herald — CFTC sues Kentucky
2026-07-02

Federal judge hears arguments on Minnesota’s ban ahead of its Aug. 1 effective date

Judge Katherine Menendez hears arguments on whether Minnesota’s ban can be preempted only for contracts that pass the CEA "swap" test. No ruling yet — the ban remains on track to take effect Aug. 1, 2026 absent an injunction.

Source: SCCG Management — swaps definition may decide ban

Frequently Asked Questions

Is Kalshi legal in Minnesota?
Minnesota has enacted a statute banning prediction markets outright — but check the effective date and any pending injunction below before assuming the ban is already in force. A signed law is not automatically an enforced one. Gov. Tim Walz signed SF 4760 (May 18, 2026), making Minnesota the first US state to enact an outright ban on prediction markets — a felony to operate, host, or promote one, not limited to sports contracts. The ban is scheduled to take effect Aug. 1, 2026. The CFTC and DOJ sued the next day seeking to enjoin it; a federal judge heard arguments July 2, 2026 and had not ruled as of this writing, meaning the law is still on track to take effect unless the court intervenes first.
Is Polymarket legal in Minnesota?
The same status applies to Polymarket as to Kalshi in Minnesota -- state actions in this category virtually always name multiple platforms rather than one exclusively. Unlike most state disputes, the action in Minnesota is not limited to sports contracts — it covers prediction-market contracts broadly, which means both Kalshi and Polymarket (and their non-sports contract lines) are affected in Minnesota, not just sports betting-adjacent products. Kalshi and Polymarket US are both CFTC-regulated exchanges, and neither has a legal advantage over the other in this dispute — state actions in this category name multiple platforms at once, not one company exclusively.
Has Minnesota banned prediction markets?
Gov. Tim Walz signed SF 4760 (May 18, 2026), making Minnesota the first US state to enact an outright ban on prediction markets — a felony to operate, host, or promote one, not limited to sports contracts. The ban is scheduled to take effect Aug. 1, 2026. The CFTC and DOJ sued the next day seeking to enjoin it; a federal judge heard arguments July 2, 2026 and had not ruled as of this writing, meaning the law is still on track to take effect unless the court intervenes first.
Where can I check the latest prediction market status for Minnesota?
This page cites its primary source directly (MinnLawyer — CFTC sues to block ban) and was last verified 2026-07-15. For the full 51-row tracker and the complete regulatory timeline, see the Odds Reference prediction markets legal tracker -- this is a fast-moving area and any single page, including this one, can lag the latest court filing.

Related Reading

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