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Polymarket has gone on offense in Massachusetts, filing a federal lawsuit that argues the state cannot use its gambling laws to shut down a prediction market it says falls under federal oversight.
The case was filed on Monday, February 9, 2026, against Massachusetts Attorney General Andrea Joy Campbell, according to coverage of the complaint. Polymarket is asking the court to block what it describes as looming state enforcement that would cause “imminent and irreparable harm” to a federally regulated derivatives market.
Polymarket moves first after the Kalshi ruling
Polymarket’s move comes just days after Kalshi failed to win a pause in its own Massachusetts fight.
On Friday, February 6, a judge refused to delay an order that requires Kalshi to stop offering sports-event contracts in the state within 30 days unless it obtains a Massachusetts gaming license.
The core argument: federal oversight, not state gambling law
Both companies are making the same big argument: event contracts fall under the Commodity Futures Trading Commission, not state gaming regulators.
Polymarket’s chief legal officer, Neal Kumar, framed it bluntly on social media: “Congress gave the CFTC, not states, exclusive authority over event contracts,” he wrote. “These are national markets with critical questions that must be resolved in federal court.”
What Polymarket says Massachusetts enforcement would do
In its filing, Polymarket warns that state-by-state action would splinter a national market and disrupt day-to-day operations.
Among the harms it lists are reduced liquidity, damage to banking and commercial relationships, and a loss of user trust. “Immediate judicial intervention is necessary to uphold Congress’ mandate, protect the federal market structure, and safeguard the rights of users nationwide,” the complaint says, as quoted in coverage.
Nevada is the recent warning sign
Massachusetts is not the only battleground. Polymarket has already faced a hard stop in Nevada.
The Nevada Gaming Control Board sued Polymarket-related entities and obtained a temporary restraining order that was set for a 14-day period while the case proceeded.
Everyone looks ahead to court’s final decision
State regulators argue these products look like sports wagering without a license. Prediction market operators say they are running federally overseen event contracts and that states are overreaching.
The courts will decide who has the final say. That outcome will shape not only Polymarket and Kalshi, but any platform trying to offer sports-style contracts nationwide.
Source: Covers
