Polymarket sues Massachusetts over sports market ban

Polymarket filed a federal lawsuit against Massachusetts on Monday, arguing the state lacks authority to regulate or ban its prediction markets as a temporary prohibition on sports-related contracts looms.

The move follows a Massachusetts court order requiring rival Kalshi to geofence the state from its sports markets within 30 days, marking a potential first-of-its-kind restriction on prediction platforms.

“Racing to state court to try to shut down Polymarket U.S. and other prediction markets doesn’t change federal law,”

Said Polymarket chief legal officer, Neil Kumar.

Polymarket and Kalshi argue their products are event contracts under the jurisdiction of the Commodity Futures Trading Commission, while state regulators contend they amount to unlicensed sports betting.

The legal fight has widened after a Nevada judge also cleared the way for a temporary ban on Polymarket’s sports markets, escalating the dispute into a broader federal-state showdown.

Crypto exchange Coinbase has been drawn into the conflict after launching Kalshi-powered prediction markets nationwide and facing regulatory pushback in Nevada.

The platforms have gained support from CFTC chair Mike Selig, who has signalled the agency will participate in related lawsuits to assert federal oversight of prediction markets.