Polymarket has followed in the legal footsteps of the CFTC as well as its main competitor – Kalshi – to sue the state of Minnesota. The formal complaint, filed in District Court, claims that Minnesota’s criminalization of prediction markets will cause “irreparable harm” if allowed to take effect on the enactment date of Saturday, August 1st.
Minnesota’s statewide ban on prediction markets is a “first of its kind” law, which would make it a felony to operate or collaborate with an exchange that offers its services within the jurisdiction. While other states are currently embroiled in their own legal battle against prediction markets, those lawsuits involve civil enforcement as opposed to Minnesota’s stance of outright criminalization.
If Minnesota’s law is allowed to go forward, professional sports leagues, state-licensed sportsbooks, and partner companies could become overnight felons due to broad restrictions on advertisers and market makers. At present, Minnesota does not allow sports betting on any kind within its borders.
Polymarket’s lawsuit against Minnesota seeks immediate injunctive release from the courts, which – if granted – would halt the portion of SF 3432 that covers the prohibition of prediction markets and the criminalization of operating event contracts. Specifically, the legal complaint names Minnesota governor Tim Walz, Attorney General Keith Ellison, and Alcohol and Gambling Enforcement Division Director Jon Anglin as defendants.
READ: Polymarket vs. Minnesota (filed on June 3, 2026)
“This action seeks to prevent imminent and irreparable harm arising from Minnesota’s recent enactment and anticipated enforcement of SF 3432—a state law that makes it a felony to operate, facilitate, service, or advertise lawful, nationwide event contract markets that are federally authorized and subject to exclusive federal regulation,” states Polymarket’s lawsuit. “SF 3432 is preempted by federal law and independently violates the First Amendment by restricting truthful speech and the dissemination of information necessary for those markets to function.”
Polymarket’s stance on the legal status of its products within the United States mirrors that of its main rival Kalshi. Both prediction exchanges are in lockstep with the federal government that the CFTC enjoys exclusive jurisdiction over the activity. The Commodity Futures Trading Commission, chaired by Mike Selig, has filed a separate lawsuit against Minnesota (and seven other states) to halt their enforcement actions against the popular forecasting platforms.
Although Polymarket is not technically available in the United States at this time, it plans an eventual public roll out of its products. Until then, Americans must sign up to a wait list to access the anticipated domestic exchange once it launches, or use a Virtual Private Network (VPN) to access Polymarket’s international prediction markets.
In terms of lobbying and court battles, both Kalshi and Polymarket are aligned. However, the two exchanges have participated in bitter back-and-forth accusations against each other on social media. Just last week, representatives from the two platforms hotly debated each other over which platform is better at detecting and banning individuals who are accused of insider trading on their respective exchanges.
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