Polymarket has officially gone on the offense in Massachusetts, filing a federal lawsuit arguing that the state cannot use local gambling laws to shut down a prediction market that falls under federal oversight.
The complaint, filed on February 9, 2026, against Attorney General Andrea Joy Campbell, marks a critical escalation in the battle over event contracts.
Polymarket is requesting the court to block looming state enforcement that it claims would cause “imminent and irreparable harm” to a federally regulated derivatives market.
This move comes just days after a judge refused to delay a similar order against Kalshi, requiring them to stop offering sports-event contracts in the state within 30 days unless they obtain a Massachusetts gaming license.
The core of the legal argument centers on jurisdiction. Polymarket maintains that event contracts fall under the Commodity Futures Trading Commission (CFTC), not state gaming regulators. Polymarket’s Chief Legal Officer, Neal Kumar, framed the issue bluntly:
“Congress gave the cftc, not states, exclusive authority over event contracts. These are national markets with critical questions that must be resolved in federal court.”
In its filing, Polymarket warns that state-by-state intervention in Massachusetts would splinter the national market, reducing liquidity and damaging commercial relationships.
The company cited Nevada as a warning sign, where the Nevada Gaming Control Board previously obtained a temporary restraining order against Polymarket-related entities. The final decision in this case will shape the future of prediction markets and any platform attempting to offer sports-style contracts nationwide.
