US judge blocks Minnesota prediction market restrictions

• A US judge has blocked Minnesota from enforcing restrictions on prediction markets.
• The ruling allows platforms to continue offering event contracts while the legal case proceeds.
• The decision adds to the debate over how prediction markets should be regulated in the US.

A US federal judge has temporarily blocked Minnesota from enforcing restrictions on prediction markets while a legal challenge moves through the courts.

The ruling prevents the state from taking action against regulated prediction market operators until the case is decided.

The court found the plaintiffs had shown a sufficient basis for a preliminary injunction, allowing the platforms to continue operating during the legal process.

The dispute centres on whether federally regulated prediction markets can operate without additional restrictions imposed by individual states.

Prediction markets allow users to trade contracts based on the outcome of future events, including elections, sports and economic data.

The decision is the latest development in the growing legal debate over federal and state oversight of prediction markets and event-based financial contracts.