Polymarket Files Federal Lawsuit Against Ohio

Polymarket US has filed a lawsuit in federal court against the state of Ohio's application of its sports betting laws to prediction market operators. The complaint, filed on October 16, argues that the state's licensing requirements conflict with constitutional provisions that protect interstate commerce.

The company is seeking a preliminary and permanent injunction to prevent Ohio officials from enforcing the rules against the federally regulated platform. According to Polymarket, restrictions imposed by the Ohio Casino Control Commission (OCCC) conflict with the Commodity Exchange Act, which leaves certain derivatives markets under the authority of the Commodity Futures Trading Commission (CFTC).

The lawsuit follows Ohio's decision earlier this month to send cease-and-desist letters to ten prediction market companies. State regulators argue that sports event contracts count as sports betting and therefore require a state license. The defendants include Ohio Attorney General Andy Wilson and OCCC Executive Director Andromeda Morrison.

Polymarket's challenge focuses on the requirement that licensed operators maintain physical infrastructure within the state. The rules require sports betting sites to keep their servers in Ohio and to serve only customers located within state borders. The company argues that applying this to its exchange, which operates nationwide, would discriminate against out-of-state operators.

Joshua Kirschner, a gambling law attorney and partner at Holland & Knight, disputed the way Polymarket characterized Ohio's licensing system.