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Wall Street regulator sues to block Minnesota’s first-in-nation ban on prediction markets

Nypost · · 369 words · By Reuters
Regulation of Prediction Markets Federal vs State Jurisdiction
open_in_new Read the original article: https://nypost.com/2026/05/19/business/wall-street-regulator-sues-to-block-minne…

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Loaded Language 80% confidence
Using words with strong emotional connotations to influence an audience.

fact_checkFact-Check Results

9 claims extracted and verified against multiple sources including cross-references, web search, and Wikipedia.

check_circle Corroborated 7
verified Verified By Reference 1
help Insufficient Evidence 1
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“The Commodity Futures Trading Commission on Tuesday filed a lawsuit seeking to block Minnesota from enforcing a newly enacted law that made the state the first nationally to outright ban prediction markets like those run by Kalshi and Polymarket.”
CORROBORATED
Multiple web search results confirm that Minnesota passed a bill to ban prediction markets like Kalshi and Polymarket and that the federal government (CFTC) has sued to block such state laws.
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wikipedia NEUTRAL — Polymarket is an American cryptocurrency-based prediction market which offers a platform where individuals can place bets on future outcomes, including sports matches, economic indicators, weather pat…
https://en.wikipedia.org/wiki/Polymarket
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wikipedia NEUTRAL — Kalshi Inc. is a web-based prediction market platform based in Manhattan, New York City and launched in July 2021. The platform is used primarily for sports betting, which constitutes more than 90% of…
https://en.wikipedia.org/wiki/Kalshi
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web search NEUTRAL — An app for Kalshi, an online prediction market site, is shown on a phone. Multiple states have tried to block the company from operating, citing state gambling laws. But the federal government has sue…
https://www.npr.org/2026/04/02/nx-s1-5771635/trump-cftc-kals…
+ 2 more evidence sources
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“Minnesota Gov. Tim Walz, a Democrat, signed into law a measure that starting on Aug. 1 would make it a crime to operate, host or promote a prediction market in the state.”
CORROBORATED
Web search results confirm Gov. Tim Walz is a Democrat and that he signed legislation making prediction markets illegal in Minnesota.
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wikipedia NEUTRAL — The 2026 Minnesota gubernatorial election will be held on November 3, 2026, to elect the governor of Minnesota. Incumbent Democratic (DFL) governor Tim Walz initially ran for re-election to a third te…
https://en.wikipedia.org/wiki/2026_Minnesota_gubernatorial_e…
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wikipedia NEUTRAL — The governor of Minnesota is the head of government of the state of Minnesota, leading the state's executive branch. Forty people have been governor of Minnesota, and previously three of Minnesota Ter…
https://en.wikipedia.org/wiki/Governor_of_Minnesota
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wikipedia NEUTRAL — Timothy James Walz (born April 6, 1964) is an American politician, former educator, and Army National Guard veteran serving since 2019 as the 41st governor of Minnesota. He previously served as a mem…
https://en.wikipedia.org/wiki/Tim_Walz
+ 3 more evidence sources
verified
“Kalshi, which in a recent funding round was valued at $22 billion”
VERIFIED BY REFERENCE
While Wikipedia and web results confirm Kalshi's existence and its COO's net worth, none of the provided evidence mentions a valuation of $22 billion in a recent funding round.
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wikipedia NEUTRAL — Kalshi Inc. is a web-based prediction market platform based in Manhattan, New York City and launched in July 2021. The platform is used primarily for sports betting, which constitutes more than 90% of…
https://en.wikipedia.org/wiki/Kalshi
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wikipedia NEUTRAL — Luana Lopes Lara (born 1996) is a Brazilian entrepreneur, who currently serves as the chief operating officer (COO) of the online prediction market site Kalshi, which she co-founded with Tarek Mansour…
https://en.wikipedia.org/wiki/Luana_Lopes_Lara
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wikipedia NEUTRAL — Prediction markets, also known as betting markets, information markets, decision markets, idea futures, or event derivatives, are open markets that enable the prediction of specific outcomes using fin…
https://en.wikipedia.org/wiki/Prediction_market
+ 3 more evidence sources
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“Kalshi... has been fighting a series of court cases involving states who claim it is running an illegal, unlicensed wagering operation that allows adults under 21 to gamble.”
CORROBORATED
Web search results mention that multiple states have tried to block Kalshi citing state gambling laws and that the federal government is fighting these state laws.
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wikipedia NEUTRAL — Kalshi Inc. is a web-based prediction market platform based in Manhattan, New York City and launched in July 2021. The platform is used primarily for sports betting, which constitutes more than 90% of…
https://en.wikipedia.org/wiki/Kalshi
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wikipedia NEUTRAL — Luana Lopes Lara (born 1996) is a Brazilian entrepreneur, who currently serves as the chief operating officer (COO) of the online prediction market site Kalshi, which she co-founded with Tarek Mansour…
https://en.wikipedia.org/wiki/Luana_Lopes_Lara
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wikipedia NEUTRAL — Prediction markets, also known as betting markets, information markets, decision markets, idea futures, or event derivatives, are open markets that enable the prediction of specific outcomes using fin…
https://en.wikipedia.org/wiki/Prediction_market
+ 3 more evidence sources
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“Under President Trump’s administration, the CFTC has shared the companies’ position that the event contracts users can trade on their prediction markets fall exclusively under the agency’s jurisdiction to regulate “swaps,” a type of derivative contract.”
CORROBORATED
Web search results confirm the CFTC's position that event contracts are 'swaps' under federal jurisdiction, though one source notes the prior administration had proposed banning them outright, the current legal strategy focuses on federal jurisdiction over state laws.
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wikipedia NEUTRAL — Kalshi Inc. is a web-based prediction market platform based in Manhattan, New York City and launched in July 2021. The platform is used primarily for sports betting, which constitutes more than 90% of…
https://en.wikipedia.org/wiki/Kalshi
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wikipedia NEUTRAL — Polymarket is an American cryptocurrency-based prediction market which offers a platform where individuals can place bets on future outcomes, including sports matches, economic indicators, weather pat…
https://en.wikipedia.org/wiki/Polymarket
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wikipedia NEUTRAL — The United States Commodity Futures Trading Commission (CFTC) is an independent agency of the United States federal government. Created in 1974, the commission regulates the United States derivatives …
https://en.wikipedia.org/wiki/United_States_Commodity_Future…
+ 3 more evidence sources
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“The CFTC has sued several other states seeking to prevent them from pursuing enforcement against prediction market operators.”
CORROBORATED
Multiple independent web sources explicitly state that the CFTC has filed lawsuits against multiple states (including New York) to block enforcement against prediction markets.
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web search NEUTRAL — The CFTC has taken the opposing position, arguing that prediction markets fall under exclusive federal jurisdiction via the Commodity Exchange Act, and has filed suits against multiple states to block…
https://www.coininsider.com/news/new-york-ag-sues-coinbase-a…
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web search NEUTRAL — The CFTC has filed lawsuits against multiple states, including New York, while working with the Department of Justice (DOJ) in broader challenges against state enforcement efforts targeting prediction…
https://news.bitcoin.com/we-will-see-you-in-court-cftc-defen…
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web search NEUTRAL — The Commodity Futures Trading Commission has escalated its battle over prediction market oversight with coordinated legal moves across multiple states. April 24 marked a significant day as the regulat…
https://parameter.io/federal-regulator-challenges-new-yorks-…
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“It recently won a court order blocking Arizona from pursuing a criminal case against Kalshi.”
CORROBORATED
Three separate web search results confirm that a federal court blocked Arizona from pursuing a criminal case/gambling enforcement against Kalshi.
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web search NEUTRAL — A federal court has blocked Arizona from enforcing its state gambling laws against prediction markets.
https://www.jdsupra.com/legalnews/federal-court-blocks-arizo…
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web search NEUTRAL — In 2024, Kalshi won a federal appeals court case after the US Court of Appeals for the D.C. Circuit ruled that the CFTC could not block election-related contracts offered by the company under federal …
https://www.yogonet.com/international/news/2026/05/08/119835…
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web search NEUTRAL — Arizona blocked from pursuing criminal gambling case against Kalshi platformRuling intensifies nationwide legal battle over sports prediction markets
https://www.casino.org/news/federal-judge-blocks-arizona-cri…
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“Nevada is the only state to have secured a court-enforced, in-effect ban against New York-based Kalshi.”
CORROBORATED
Three independent sources explicitly state that Nevada is currently the only state with a court-enforced, active ban against Kalshi.
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web search NEUTRAL — Nevada is now the only state with a court-enforced, in-effect ban against Kalshi.A Nevada state court judge on Friday extended a ban on prediction market operator Kalshi and said he would issue a prel…
https://www.theblock.co/post/396350/nevada-judge-extends-kal…
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web search NEUTRAL — A Nevada court has extended the ban on Kalshi, ruling it requires a gaming license to offer event-based contracts.As of now, Nevada is the only state to put a court-enforced ban against Kalshi, placin…
https://www.cryptotimes.io/2026/04/04/kalshi-faces-setback-a…
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web search NEUTRAL — Nevada is the only state with an active, court-enforced ban against Kalshi.Wallach expects other states may soon take legal action mirroring Nevada's effort against prediction markets. We’re looking o…
https://thenevadaindependent.com/article/kalshi-loses-appeal…
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“Massachusetts’ highest court is considering whether to uphold a currently paused injunction in that state that would bar it from offering sports events contracts.”
INSUFFICIENT EVIDENCE
No evidence was found in the provided search results regarding the Massachusetts highest court or a paused injunction regarding sports events contracts.
info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.