Polymarket, a decentralized prediction market platform, has filed a lawsuit against the state of Massachusetts. According to NS3.AI, the company is contesting the state's decision to regulate prediction markets as gambling. Polymarket argues that the Commodity Futures Trading Commission (CFTC) possesses exclusive federal regulatory authority over event-based contracts, which should preclude state-level interference.
This legal action comes in the wake of a recent Massachusetts court ruling that deemed Kalshi's sports event contracts as illegal gambling activities due to the absence of a state license. Polymarket's lawsuit seeks to clarify the regulatory boundaries between state and federal oversight concerning prediction markets.