A court has temporarily blocked Minnesota’s ban on Kalshi and Polymarket, giving prediction market operators an interim legal victory while the broader dispute over event-based trading in the state continues.

The order prevents Minnesota from enforcing its restriction against the platforms for now. The ruling is temporary and does not decide whether the state can ultimately bar Kalshi, Polymarket or similar prediction market services from operating within Minnesota.

Minnesota ban paused while litigation proceeds

A judge blocked Minnesota’s effort to prohibit prediction markets, according to Courthouse News. The decision keeps Kalshi and Polymarket available in the state while the case moves forward.

The dispute stems from a Minnesota measure enacted this year and recorded as Chapter 118 of the 2026 session laws. Kalshi and Polymarket challenged the restriction rather than withdrawing from the Minnesota market.

The court’s relief only pauses enforcement. It does not resolve the merits of the legal challenge or determine whether Minnesota has the authority to restrict access to the platforms. Temporary court orders of this kind preserve the status quo while litigation continues, leaving the final legal questions for later proceedings.

Kalshi’s lawsuit was filed against the state’s attorney general, according to the federal docket in KalshiEX LLC v. Ellison. The Minnesota Attorney General’s office had previously addressed prediction markets in a June statement.

Case puts prediction market access in focus

Both Kalshi and Polymarket were named in the legal action, framing the dispute as a broader question over prediction market access rather than a case involving only one company, according to Courthouse News reporting.

Polymarket is widely associated with crypto-based event trading, making the Minnesota access dispute relevant to digital asset market participants. The same two companies have also been referenced in connection with reports that Meta was building a rival prediction platform to Polymarket and Kalshi.

The temporary block underscores continuing legal uncertainty for both regulated and crypto-linked prediction platforms. Kalshi operates under federal derivatives oversight, and the Commodity Futures Trading Commission remains a central regulator in the governance of these venues, including through agency actions such as a CFTC press release addressing the sector. The Minnesota case therefore sits within a wider debate over how event contracts should be treated when state consumer-protection or gambling concerns intersect with federally regulated markets and crypto-linked platforms.

Prediction market platforms have also faced scrutiny beyond state-level restrictions, including a case in which the DOJ charged a Google engineer over alleged Polymarket insider trading. The Minnesota ruling adds another unresolved legal front, with the underlying case expected to continue through further proceedings.