Polymarket Challenges Ohio Sports Rules After New CFTC Actions

Polymarket US sued Ohio on Oct. 16, arguing federal commodities law preempts state gambling rules as applied to its sports event contracts.

The case was filed in the U.S. District Court for the Southern District of Ohio. It names Ohio Attorney General Andy Wilson, seven members of the Ohio Casino Control Commission and Interim Executive Director Andromeda Morrison. The filing came on the deadline to comply with Ohio’s order to stop offering sports contracts without a state license.

The complaint argues Ohio’s licensing system favors companies with an in-state presence and limits licensed operators to customers in Ohio. It says those restrictions discriminate against out-of-state businesses and violate the Commerce Clause.

A separate argument invokes the Commodity Exchange Act, which Polymarket says gives the Commodity Futures Trading Commission (CFTC) exclusive authority over event contracts on federally designated exchanges. The complaint argues the law preempts Ohio’s gambling rules only as applied to Polymarket US.

The complaint points to two CFTC actions issued Oct. 9 as a change in the legal backdrop after the Sixth Circuit’s Sept. 25 ruling against Kalshi. The court held that federal law did not preempt Ohio and Tennessee gambling laws in that case. One CFTC action was an interim final rule excluding casino-style gambling, including sportsbook wagers, from the definition of a swap. The other was a proposed rule that would classify event contracts as swaps.

As of Oct. 21, Ohio had not responded, and Polymarket US had not filed a motion for a preliminary injunction.