Polymarket went on the offensive Monday in the ongoing battle of prediction markets against Massachusetts regulators, claiming in a federal lawsuit that the state lacks authority to regulate its platform.
Should it go into effect, the preliminary injunction would be the first of its kind restricting the ability of prediction market platforms to offer certain wagers to American customers.
For months, platforms like Polymarket and Kalshi have argued state regulators have no jurisdiction to regulate sports-related prediction markets, which they say are technically event contracts under the federal jurisdiction of the CFTC.
“Racing to state court to try to shut down Polymarket U.S. and other prediction markets doesn’t change federal law,” Polymarket Chief Legal Officer Neil Kumar said Monday. “States like MA and NV that have done so will miss an amazing opportunity to help build markets for tomorrow.”
Today, we filed a lawsuit in federal court against Massachusetts. Congress gave the CFTC, not states, exclusive authority over event contracts.
These are national markets with critical questions that must be resolved in federal court 🧵
Though the companies have faced a string of setbacks in state court, they recently gained a new ally in CFTC Chair Mike Selig. Selig recently announced that the CFTC will be participating in prediction market-related lawsuits, advocating for their regulation at the federal level.
