Kalshi Files Federal Suit to Stop Minnesota's SF4760 Felony Ban on Prediction Markets

Kalshi said it sued Minnesota in federal court on May 28 to block SF4760, a law signed May 18 that would make operating or advertising prediction markets a felony when it takes effect on August 1, 2026. The company argues its event contracts are federally regulated derivatives under the Commodity Exchange Act and that the state law conflicts with CFTC authority and limits its ability to advertise a lawful product. The CFTC also brought its own case within 24 hours of the bill's signing and is seeking an injunction to pause enforcement.