Minnesota's felony-classification law takes effect August 1, 2026. A federal court heard oral arguments July 2 — a ruling is imminent.
Minnesota passed a law classifying unlicensed prediction market trading as a felony, effective August 1, 2026. The CFTC, Kalshi, and Polymarket are fighting it in federal court — oral argument was heard July 2.
Minnesota's felony ban takes effect August 1, 2026 — court ruling imminent
Oral argument heard 2026-07-02 by Judge Menendez. Platforms accessible while ruling is pending. Confirm access before trading.
Minnesota passed a law classifying participation in unlicensed prediction market trading as a felony — an unusually high threshold compared to most states, which have pursued civil enforcement or licensing requirements. The law is set to take effect August 1, 2026.
The law applies to platforms that are not licensed under Minnesota state gaming law. CFTC-regulated exchanges (Kalshi, Polymarket) hold federal designations — DCM and DCO licenses issued by the Commodity Futures Trading Commission — but do not hold Minnesota state gaming licenses. The core legal dispute is whether federal law preempts Minnesota’s authority to require state licensing of federally regulated exchanges.
Exact bill citation and effective date pending primary source verification. Confirm at leg.mn.gov.
2026 (Spring)
Minnesota law passed
Minnesota passed a law classifying unlicensed prediction market trading as a felony, effective August 1, 2026. Exact bill citation pending primary source verification at leg.mn.gov.
June 2026
CFTC files federal suit
The CFTC filed against Minnesota as its 9th state action, asserting exclusive federal jurisdiction over CFTC-regulated prediction market exchanges under the Commodity Exchange Act.
June–July 2026
Preliminary injunction motions filed
Kalshi, Polymarket, and the CFTC each filed preliminary injunction motions seeking to block enforcement of Minnesota's law while the federal case proceeds. The court consolidated all three.
July 2, 2026
Oral argument before Judge Menendez
Judge Menendez heard consolidated oral argument on the three preliminary injunction motions. All parties — Kalshi, Polymarket, and the CFTC — argued for the injunction; Minnesota defended its law.
Before August 1, 2026
Ruling expected
The court is expected to rule before August 1, when Minnesota's felony-classification law takes effect.
August 1, 2026
Felony ban effective date
Minnesota's law classifying unlicensed prediction market trading as a felony takes effect unless blocked by court order. Platforms not covered by an injunction must restrict Minnesota access or face liability.
Trading continues while the case proceeds.
Platforms remain accessible in Minnesota.
August 1 law cannot be enforced pending the ruling.
Underlying legal question unresolved — case continues.
Minnesota’s felony law takes effect August 1.
Platforms must restrict MN access or face liability.
Platform operators face criminal exposure, not individual traders — but access will likely be cut off.
Trading would shift to platforms not named in the case, or stop in MN.
Either way: Confirm your platform’s current Minnesota access status before August 1. Do not assume access continues. Check Kalshi.com and Polymarket.com directly for state-specific access confirmation.
Access status is pending the court ruling. Values marked “—” will update when Kalshi and Polymarket confirm state-specific decisions. Confirm at each platform’s official site before trading.
| Platform | MN Access |
|---|---|
| Kalshi | — |
| Polymarket | — |
| Robinhood Event Contracts | — |
| ForecastEx (IBKR) | — |
| FanDuel Predicts | — |
| DraftKings DKeX | — |
| PredictIt | — |
Confirm current access at each platform's official site before trading. Access may change before and after the August 1 deadline.
The CFTC has filed federal preemption actions in nine states as of summer 2026. Minnesota is notable for two reasons: its felony-level criminal classification (higher than most states) and the fact that it is the first Republican-AG state to face a CFTC preemption filing.
| State | Status |
|---|---|
| North Carolina | Authorized |
| Illinois | Law in effect, enforcement paused |
| Michigan | TRO / PI proceedings |
| Minnesota | Ruling pending — Aug 1 deadline |
Illinois Prediction Markets
SB 3019 in effect July 1 — companion state enforcement coverage.
Michigan Prediction Markets
Kalshi TRO issued June 29, PI hearing July 13.
State Regulations Hub
Full 50-state access grid and enforcement tracker.
Federal vs. State: How This Works
Why CFTC-regulated platforms are legal federally but challenged by states.
