Prediction market Polymarket has filed a lawsuit to stave off Massachusetts restrictions on its operations.
Polymarket argues that it doesn’t fall under the jurisdiction of Massachusetts officials, as it claims that prediction markets are governed on a national level by the Commodity Futures Trading Commission (CFTC) rather than local gambling laws. The lawsuit names Massachusetts Attorney General Andrea Campbell and state gaming regulators.
The company argues that it shouldn’t need to navigate both federal regulations and state-level restrictions, claiming that the obstacles are disrupting its operations and the growth of its user base. With fellow prediction market Kalshi recently given an injunction in Massachusetts, the environment for prediction markets in the state is becoming increasingly unstable.
Today, we filed a lawsuit in federal court against Massachusetts. 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
— Neal Kumar (@HereComesKumar) February 9, 2026
“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,” said Polymarket Chief Legal Officer Neal Kumar in a statement shared to X. “As always, we continue to welcome dialogue with other states while the federal courts consider these important issues. We fight for the users.”
Who holds jurisdiction over prediction markets like Polymarket?
The question of who has the authority to regulate prediction markets has been heating up across the United States, with Polymarket already embroiled in legal cases in New York and Nevada. Polymarket’s Massachusetts filing references comments from CFTC chair Michael Selig, who said on January 29 that the agency would reassess how it handles cases like this one that put jurisdiction rules to the test.
Some state regulators see prediction markets as a way of skirting gambling laws, with operators like Polymarket offering wagers similar to those found on traditional sportsbooks, as well as unique contracts on social and political events that can’t be found elsewhere. In the view of some criticis, such prediction markets are essentially avenues of unlicensed gambling that could leave users exposed to security risks or gambling-related harm.
Featured image: Polymarket
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