News & Updates

Bitter Rivals Kalshi and Polymarket Unite to Battle Minnesota Over Betting Ban

Kalshi and Polymarket, two fierce rivals, have filed a lawsuit to stop Minnesota from enforcing a new statewide law that bans prediction market platforms. The firms claim that the contracts they offer are federally regulated products, while the state argues that the law is vital to address risks tied to gambling. The case could help define the extent of state authority to regulate prediction markets. 4th of July Sale - 70% Off * Unlock powerful investing tools and data-driven insights with TipRanks Premium for more confident investment decisions. * Discover top stock picks and new investment opportunities through TipRanks' Smart Investor Newsletter. Minnesota Enacts First Statewide Prediction Market Ban Minnesota's new law makes it a felony to operate, host, or advertise prediction markets in the state, forcing platforms such as Kalshi and Polymarket to shut down or face criminal charges. It is the first U.S. state law to explicitly ban such platforms, covering contracts tied to entertainment, elections, sports, weather, public health crises, and wars. Governor Tim Walz signed the measure into law on May 18, and it is set to take effect on August 1. Supporters, led by Democratic Representative Emma Greenman, say the law is needed to regulate emerging forms of gambling and protect consumers and minors. Kalshi, Polymarket Push Back Against Minnesota Ban Kalshi and Polymarket filed the case in the U.S. District Court for the District of Minnesota, asking the court to temporarily block the law before it takes effect. A federal judge in Minneapolis heard the case on July 2 but did not issue an immediate ruling. The firms contend that prediction markets are lawful financial products used for forecasting and managing risk, not gambling. They also say the ban could push users toward offshore or unregulated platforms instead of regulated U.S. markets. In addition, Kalshi and Polymarket argue their event contracts fall under the sole jurisdiction of the Commodity Futures Trading Commission (CFTC), making Minnesota's law incompatible with federal oversight. The CFTC has also filed a separate lawsuit against the state, saying event-based contracts should be regulated at the federal level rather than by individual states. Can I Invest in Kalshi or Polymarket? Kalshi and Polymarket are private companies, meaning they do not yet have publicly traded shares. However, investors seeking exposure to the broader prediction market or event-contract space may consider publicly listed firms such as Robinhood Markets (HOOD), DraftKings (DKNG), and Flutter Entertainment (FLUT). (See Their Stock Forecasts)