Crypto-based prediction market Polymarket is going to battle against the state of Massachusetts.
Polymarket General Counsel Neal Kumar said the company has filed a federal lawsuit against the state, highlighting jurisdictional issues regarding event contracts.
“Congress gave the CFTC, not the states, exclusive authority over event contracts. These are domestic markets with critical questions that must be resolved in federal court.
Rushing through state courts to try to shut down Polymarket US and other prediction markets does not change federal law – and states like MA and NV that have done so will miss an incredible opportunity to help build the markets of tomorrow.
Last September, Massachusetts filed a lawsuit against one of Polymarket’s competitors, Kalshi, arguing that the company was operating in violation of the state’s sports betting laws. Kalshi tried to dismiss the state’s preliminary injunction, but a judge rejected the firm’s argument last month.
In Polymarket’s new lawsuit, the company claims it “seeks to prevent imminent and irreparable harm resulting from Massachusetts’ enforcement of state gambling laws against federally regulated derivatives exchanges – enforcement that Congress has expressly prohibited.”
Polymarket’s filing in Massachusetts follows similar action in Nevada last week, after a state court ordered the company to suspend operations.
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