Published on: February 10, 2026, 10:29h.
Updated on: February 10, 2026, 10:31h.
- Polymarket initiates legal action in federal court in Massachusetts
- This case adds to growing legal challenges nationwide over prediction market regulations
- Judge recently upheld a ban on Kalshi in Massachusetts
Polymarket’s legal team has launched a lawsuit in federal court in Massachusetts, marking yet another chapter in the ongoing battle for jurisdiction over prediction market firms across the United States.
“Congress has designated the CFTC, not state authorities, as the sole regulator for event contracts,” declared Polymarket’s Chief Legal Officer, Neal Kumar, on X. “These markets function nationally, addressing critical issues that need resolution in federal courts.”
The lawsuit names Massachusetts Attorney General Andrea Joy Campbell and several state officials. According to court documents, this legal action aims to avert urgent and irreparable harm stemming from the enforcement of state gambling laws against federally regulated derivatives exchanges—an act that Congress has specifically prohibited.
Kalshi’s Shutdown Directive
Polymarket asserts that federal regulations grant sole authority to the Commodity Futures Trading Commission (CFTC) over event contracts, superseding state regulations. However, state officials maintain that prediction market contracts equate to unlicensed sports gambling under local law.
Polymarket seeks an injunction from the court to prevent state enforcement, citing the recent ruling against Kalshi, which a judge mandated to stop offering sports-event contracts within Massachusetts unless it secures a gaming license from the state within 30 days, following a ruling on February 6, 2026.
Massachusetts as a Legal Battleground
“Polymarket US faces a tangible and imminent threat of similar enforcement actions risking civil penalties, potential criminal charges, and forced operational shutdowns in Massachusetts, alongside significant repercussions for its nationwide business activities.”
The company highlights that any state injunction against its operations would inflict “irreparable” damage, disrupt “federally authorized” activities, fragment the national market, diminish liquidity, jeopardize banking partnerships, and erode user trust.
Polymarket confronts parallel legal issues in states like Nevada as well. The outcome of the Massachusetts court ruling will significantly affect the trajectory of Polymarket, Kalshi, and other prediction market platforms, influencing how they can offer sports betting event contracts across the nation amidst varying state access limitations.