Polymarket to Block State Action on Prediction Markets

Crypto News Regulation

Polymarket Sues to Block State Action on Prediction Markets

Written by Aaron S.,

Editor-In-Chief

Last Updated: February 09, 2026

Key Takeaways

Polymarket said only the CFTC holds authority over event-based contracts and argued that states cannot shut down federally regulated markets;
The company filed a federal case to stop a possible action by Massachusetts and said the dispute belongs under federal law;
The lawsuit followed a Massachusetts court order that blocked Kalshi from offering sports-related prediction contracts.

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Polymarket Sues to Block State Action on Prediction Markets

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The crypto prediction platform Polymarket has filed a lawsuit against Massachusetts in federal court.

The company argued that only the Commodity Futures Trading Commission (CFTC) has the power to regulate event-based contracts.

Because of this, Polymarket stated that individual states cannot order federally regulated prediction markets to stop operating.

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Neal Kumar, the company’s chief legal officer, confirmed the lawsuit on February 9. He said the issues involve national markets and should be handled under federal law, not state rules.

Kumar said, “Racing to state court to try to shut down Polymarket US and other prediction markets doesn’t change federal law, and states like MA and NV that have done so will miss an amazing opportunity to help build markets for tomorrow".

Bloomberg Law reported that Polymarket filed the case before any enforcement action took place. The company aims to stop a possible decision by Massachusetts Attorney General Andrea Campbell.

Polymarket claimed that state enforcement would interfere with a market structure that sits under federal oversight.

This lawsuit follows a Massachusetts state court's preliminary order against Kalshi, another prediction-market operator.

Regulators in Hungary and Portugal have decided to limit access to Polymarket. What happened? Read the full story.