The tournament started in late March in Sioux Falls.
State health officials are concerned about the cluster in the southwest metro.
The Minnesota Department of Health announced a 'rapidly growing' outbreak on Friday.
The department says it's been linked back to youth sports, with cases also found at local gyms.
The increases were expected with some restrictions being lifted.
The CDC says masks may make it hard to breathe in high-intensity sports.
Additional guidance on games and spectators is forthcoming.
The group is appealing the judge's decision.
Let Them Play MN filed the lawsuit on behalf of several unnamed youth players and coaches.
Gov. Walz said new guidance will be released "within the next day or so."
The latest guidance issued by the Minnesota Department of Health came out Friday afternoon.