Polymarket sues Massachusetts over crackdown

Polymarket has sued Massachusetts Attorney General Andrea Joy Campbell and other state officials in federal court in Massachusetts, seeking to prevent enforcement of state gambling laws against its event-contract business, according to Casino.org reporting republished by GambleRss.

The lawsuit centers on who has regulatory authority: Polymarket argues that Congress assigned exclusive oversight of event contracts to the Commodity Futures Trading Commission (CFTC). State officials contend that prediction-market contracts constitute sports gambling offered without a state license.

Federal authority meets state enforcement

Polymarket Chief Legal Officer Neal Kumar outlined the company’s position on X, arguing that oversight belongs to the CFTC rather than individual states and that federal courts should resolve questions affecting national markets. The filing seeks protection from prospective Massachusetts enforcement that the company says federal law prohibits.

The company points to Massachusetts’s injunction against rival Kalshi on Feb. 6 2026 as evidence of the threat. A judge declined to postpone an order requiring Kalshi to cease offering sports-event contracts in the state within 30 days unless it obtained a Massachusetts gaming license, according to the report.

Access and operational risks

Polymarket US argues that comparable enforcement could bring civil penalties, potential criminal liability and a shutdown of its Massachusetts operations, with repercussions for its business nationwide. It also says a state injunction could divide the national market, diminish liquidity, damage banking and commercial relationships, and erode users’ confidence.

Massachusetts is not the company’s only state-level legal challenge; it faces similar obstacles in Nevada. The Massachusetts case could help determine how Polymarket, Kalshi and other prediction-market operators offer sports-event contracts across the country, including whether access remains subject to state-by-state restrictions.

What it means for prediction markets

• Jurisdiction is the central question: Polymarket’s claim of exclusive CFTC authority remains a legal argument, not a ruling in this case.
• Market access is at stake: The Kalshi injunction illustrates the state-level restrictions Polymarket is seeking to prevent.
• Liquidity risks are part of the company’s case: Polymarket argues that fragmented access would weaken liquidity and disrupt business relationships; those are asserted consequences, not established outcomes.