A federal judge granted a preliminary injunction pausing Minnesota’s first-of-its-kind prediction market ban, days before it was slated to go into effect. The ruling comes after the Justice Department and the Commodity Futures Trading Commission, along with Kalshi and Polymarket US, filed lawsuits responding to the law, which was scheduled to take effect Saturday.

The plaintiffs argue the ban is pre-empted by federal law, which gives the CFTC exclusive authority to regulate the event contracts traded on their federally registered exchanges.