Polymarket Takes Ohio to Federal Court, Citing New CFTC Rules After Kalshi’s Appeals Loss

Polymarket US has sued Ohio’s attorney general and casino regulators in federal court, arguing that CFTC rulemaking from this month undercuts a September appeals ruling against Kalshi.

The exchange filed its complaint on Oct. 16, Ohio’s deadline, in Ohio’s Southern District, where Judge Douglas Cole has the case. It names Attorney General Andy Wilson, the Ohio Casino Control Commission‘s seven members and interim executive director Andromeda Morrison.

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According to the complaint, the commission’s Oct. 2 letter told Polymarket US to “immediately cease and desist from offering” sports event contracts without a state license. The letter, filed as an exhibit but not freely available online, alleges the company “is clearly engaged in bookmaking or facilitating bookmaking in violation of Ohio civil and criminal law.”

Ten companies got the notice. A commission spokesperson told SportsBettingDime one has confirmed compliance and two are suing, and the outlet reported Polymarket is one of the two.

First, the complaint argues Ohio’s licensing rules favor companies with an in-state physical footprint and would confine even licensed operators to Ohio customers. “These discriminatory, balkanizing measures violate the Constitution’s promise of open, interstate commerce,” the complaint says.

Second, it argues the Commodity Exchange Act gives the CFTC exclusive authority over event contracts on federally designated exchanges. The Sixth Circuit, which covers Ohio, on Sept. 25 ruled against Kalshi on preemption. The complaint says that ruling “was decided against a different legal landscape,” citing two Oct. 9 CFTC actions: an interim final rule carving casino-style gambling out of the swap definition and a proposed rule writing event contracts in.

Polymarket US wants Ohio’s gambling laws declared unconstitutional and preempted as applied to it, plus preliminary and permanent injunctions. As of Oct. 21, it had not moved for a preliminary injunction, nor had Ohio responded.

The filing also cites the Third Circuit, which sided with Kalshi against New Jersey on preemption. New Jersey has asked the Supreme Court to review that ruling, and the Sixth Circuit’s decision has since left appeals courts divided.

Related Listen: Bits + Bips: Is Kalshi Headed to the Supreme Court Next?

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