Polymarket sues Ohio in federal court citing new CFTC rules after Kalshi appeals loss
Ohio regulators sent Polymarket US a cease-and-desist letter ordering it to stop offering sports event contracts without a state license. Polymarket responded by filing suit in federal court. The legal move cites new Commodity Futures Trading Commission rules. It follows Kalshi's recent loss on appeal in a similar Ohio case. The commission's Oct. 2 letter told Polymarket US to halt unlicensed sports event contract operations in the state.
Polymarket's suit tests whether new CFTC rules can restore federal preemption after the Sixth Circuit stripped Kalshi's shield in the same state. A win would give Polymarket a counter-precedent to wield elsewhere. A loss deepens the circuit split and pushes platforms toward expensive state-by-state fights. Kalshi already faces parallel suits in Utah, Ohio, and Tennessee.
Each state victory becomes template law the next attorney general copies. The NFL has urged the Supreme Court to cement state gambling framing, so Ohio outcomes strengthen that alliance. Polymarket must now fund legal spend on multiple fronts while the CFTC's swap-rule proposal remains in White House review, slower than any courtroom.
Polymarket joins Kalshi in the federal preemption fight after losses in Ohio and Tennessee, with Crypto.com and Novig also suing Missouri to halt state enforcement against CFTC-registered platforms.