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Polymarket Sues Massachusetts to Assert CFTC Authority Over Prediction Markets

The complaint asks a federal judge to confirm that event contracts fall under exclusive CFTC jurisdiction.

Overview

  • Polymarket filed in U.S. District Court in Boston, naming Attorney General Andrea Campbell and gaming officials, and seeking declaratory and injunctive relief to block state enforcement.
  • The company argues state gambling rules are preempted by federal law and warns that geofencing or bans would cause irreparable harm by fragmenting liquidity and disrupting nationwide operations.
  • The lawsuit follows a Massachusetts Superior Court order requiring rival Kalshi to block state access to sports markets within 30 days, and a Nevada court action targeting Polymarket’s sports contracts.
  • Polymarket cites recent signals from CFTC Chair Michael Selig about reassessing jurisdictional cases, along with an agency amicus filing in related litigation, as evidence of federal oversight.
  • The case could set a precedent on whether prediction markets are governed by a single federal framework or by state gambling laws, a decision with major implications for sports-heavy platforms and partners.