Polymarket joins Kalshi in federal suit challenging Minnesota prediction market ban
Polymarket sued Minnesota in federal court Wednesday, joining Kalshi in challenging the state's ban on prediction markets. The complaint for injunctive relief, filed in the U.S. District Court for the District of Minnesota, names Gov. Tim Walz and Attorney General Keith Ellison among the defendants. Polymarket US cites federal preemption and free speech concerns in challenging SF 3432, the state bill prohibiting prediction market access for residents. The suit follows earlier legal actions by Kalshi and a Trump-related party against the same Minnesota law. Polymarket's domestic division filed in Minneapolis, targeting what the platform argues is an increasingly polarizing prohibition on event-contract operations that provide public forecasting data.
Polymarket now holds direct standing to argue federal preemption alongside Kalshi and the CFTC, tripling the plaintiff pressure on Minnesota's felony statute before its August 1 effective date.
A loss would force Polymarket to geofence 5.7 million residents and sever local payment partnerships, replicating the compliance damage it absorbed after a Nevada judge ordered an identical geofence just days earlier.
Polymarket thus joins Kalshi and the CFTC's parallel federal challenge against Minnesota's felony ban, while separately fighting a Nevada state injunction that already forced it to geofence that market.