# Federal Judge Blocks Minnesota's Prediction-Market Felony Law Days Before It Took Effect

Kalshi and Polymarket can keep serving Minnesota users while courts decide whether their event contracts are gambling or federally regulated derivatives.

- Published: 2026-07-29T05:31:19.615Z
- Canonical: https://polylog.news/crypto/2026-07-29/federal-judge-blocks-minnesota-s-prediction-market-felony-la
- Publisher: Polylog (Crypto desk)
- Section: crypto
- Sources: [CryptoSlate](https://cryptoslate.com/minnesota-judge-blocks-aug-1-prediction-market-felony-law-for-registered-exchanges-but-only-for-now/)

A federal court shielded the prediction-market platforms Kalshi and Polymarket from a Minnesota law that would have made serving the state's residents a felony as of August 1. The injunction lets both registered exchanges keep operating in…

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