Prediction market Polymarket has filed a lawsuit to stave off Massachusetts restrictions on its operations.
Polymarket argues that it doesn’t fall beneath the jurisdiction of Massachusetts officers, because it claims that prediction markets are ruled on a nationwide stage by the Commodity Futures Buying and selling Fee (CFTC) slightly than native playing legal guidelines. The lawsuit names Massachusetts Legal professional Basic Andrea Campbell and state gaming regulators.
The corporate argues that it shouldn’t have to navigate each federal rules and state-level restrictions, claiming that the obstacles are disrupting its operations and the expansion of its consumer base. With fellow prediction market Kalshi recently given an injunction in Massachusetts, the surroundings for prediction markets within the state is turning into more and more unstable.
At the moment, we filed a lawsuit in federal courtroom in opposition to Massachusetts. Congress gave the CFTC, not states, unique authority over occasion contracts.
These are nationwide markets with essential questions that have to be resolved in federal courtroom
— Neal Kumar (@HereComesKumar) February 9, 2026
“Racing to state courtroom to attempt to shut down Polymarket US and different prediction markets doesn’t change federal regulation — and states like MA and NV which have accomplished so will miss a tremendous alternative to assist construct markets for tomorrow,” stated Polymarket Chief Authorized Officer Neal Kumar in a statement shared to X. “As all the time, we proceed to welcome dialogue with different states whereas the federal courts contemplate these vital points. We battle for the customers.”
Who holds jurisdiction over prediction markets like Polymarket?
The query of who has the authority to manage prediction markets has been heating up throughout the USA, with Polymarket already embroiled in authorized circumstances in New York and Nevada. Polymarket’s Massachusetts submitting references feedback from CFTC chair Michael Selig, who stated on January 29 that the company would reassess how it handles cases like this one which put jurisdiction guidelines to the take a look at.
Some state regulators see prediction markets as a means of skirting playing legal guidelines, with operators like Polymarket providing wagers much like these discovered on conventional sportsbooks, in addition to distinctive contracts on social and political occasions that may’t be discovered elsewhere. Within the view of some criticis, such prediction markets are primarily avenues of unlicensed playing that might go away customers uncovered to safety dangers or gambling-related hurt.
Featured picture: Polymarket
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