Polymarket US sues Ohio over a cease-and-desist order
The complaint argues that federal commodities law overrides state gambling rules.
Key Takeaways
- Polymarket argues Ohio’s licensing rules favour businesses with a local presence, and that server-location and in-state wagering requirements violate the Constitution’s interstate commerce protections.
- It also argues the Commodity Exchange Act overrides Ohio’s gambling laws, since the CFTC designated it a contract market on July 9, 2025.
US.- Polymarket US has sued Ohio’s attorney general and casino regulators in federal court, arguing that the state’s sports gaming licensing requirements unlawfully restrict its business. QCX LLC, which operates as Polymarket US, filed the complaint on October 16 in the US District Court for the Southern District of Ohio, the same day the Ohio Casino Control Commission had set as the deadline for the company to confirm it had stopped offering sports event contracts in the state.
The case, No. 2:26-cv-01502, names Attorney General Andy Wilson, interim executive director Andromeda Morrison and the commission’s seven members in their official capacities. It has been assigned to Judge Douglas R. Cole, while Squire Patton Boggs and Gibson, Dunn & Crutcher represent Polymarket US.
The complaint follows cease-and-desist letters sent by the commission on October 2 to Polymarket and nine other prediction market platforms and brokers. The regulator ordered the company to “immediately cease and desist from offering sports event contracts to Ohio residents without a licence issued by the Commission” and to confirm compliance within 14 days.
Polymarket argues that complying with the order would force it to block Ohio users and close their open positions, while continuing to operate would expose it to legal action. The company says either option would cause harm that could not be fully remedied through financial compensation.
Ohio’s licensing rules and federal law
The lawsuit challenges Ohio’s licensing requirements, which the company says favour businesses with a local presence. Under state law, online sports betting licences are generally limited to applicants that have an operating business or a sports gaming facility in Ohio. Polymarket says major brands such as FanDuel, DraftKings, BetMGM, Caesars, bet365, Fanatics and ESPN Bet can operate in Ohio through agreements with locally licensed businesses.
The company also challenges rules requiring betting servers to be located in secure facilities in Ohio and limiting wagers to people physically present in the state. “These discriminatory, balkanising measures violate the Constitution’s promise of open, interstate commerce.” the complaint states. It also argues that the restrictions violate the US Constitution’s protections for interstate commerce.
The second part of the lawsuit argues that the federal Commodity Exchange Act overrides Ohio’s gambling laws as they apply to Polymarket. The company says the Commodity Futures Trading Commission (CFTC) designated it as a contract market on July 9, 2025, giving the federal agency “exclusive jurisdiction” over swaps traded on such markets.
Polymarket is requesting the court to rule that several Ohio gambling laws cannot be enforced against its operations because they conflict with federal law. It also wants a court order preventing state officials from taking action against the company and is seeking reimbursement for its legal costs.
