Kalshi has filed a federal lawsuit against Minnesota's new law that criminalizes the operation and advertising of prediction markets, effective August 1. The lawsuit follows a similar motion from the CFTC challenging the law's constitutionality.
Minnesota's Governor signed a law making it a crime to advertise and operate prediction market platforms starting August 1. Kalshi's lawsuit argues that the law violates the Supremacy Clause of the U.S. Constitution, claiming that the federal Commodity Exchange Act grants the CFTC exclusive jurisdiction over such markets. Additionally, Kalshi contests a provision that criminalizes marketing prediction markets, asserting it infringes on First Amendment rights.