Polymarket has taken Ohio's sports betting rules to federal court, filing in the Southern District of Ohio on October 16. The suit, case No. 2:26-cv-01502 before Judge Douglas R. Cole, is brought on behalf of QCX LLC, which trades as Polymarket US. The defendants are state attorney general Andy Wilson, Ohio Casino Control Commission interim executive director Andromeda Morrison and seven members of the commission.
The filing follows the September 25 appeals court decision in the Kalshi case. The Sixth Circuit ruled unanimously that Kalshi's sports event contracts are not swaps under the Commodity Exchange Act, and that federal law does not displace Ohio and Tennessee rules even if such contracts were swaps. Polymarket argues that ruling predates later CFTC action and is still subject to judicial review, pointing to an interim final rule dated October 9, effective October 19, that keeps state-licensed sports wagering and casino games outside the definition of a swap. Comments run to November 18.
What regulators are demanding
The suit landed on the same day as a deadline set by cease-and-desist letters sent October 2 to Polymarket, nine other prediction market operators and brokers. Ohio regulators treat sports event contracts as sports gaming and have ordered them halted without state licences, under threat of administrative, civil and criminal liability. Most recipients continued operating past the deadline, though Plus500US agreed to wind down sports contracts. Polymarket and Robinhood maintain that their businesses fall under federal oversight.
Polymarket says Ohio's licensing system favours local operators: Type A licences require a presence or facility in the state, regulators weigh an applicant's contribution to the local economy, licensees are capped at 25, and national brands trade through agreements with licensed companies. The complaint also challenges requirements that wagers be server-located in Ohio and that customers be physically present in the state. 'These discriminatory, Balkanizing measures violate the constitutional promise of open interstate commerce,' the suit states.
Polymarket, which received contract market status from the CFTC on July 9, 2025, seeks a preliminary and permanent injunction, a declaration that Ohio's rules are unconstitutional and unenforceable against its operations, and costs. Squire Patton Boggs and Gibson, Dunn & Crutcher act for the company. Ohio governor Mike DeWine has said the state will sue operators that break the rules and called sports event contracts 'plain and simple gambling.' 'The law is perfectly clear. The court decisions are perfectly clear,' he said.
