Polymarket US has initiated a federal lawsuit against Ohio officials, including Interim Attorney General Andy Wilson. The company is acting through its CFTC-registered entity, QCX LLC, to challenge state cease-and-desist orders regarding its sports event contracts.
The lawsuit, filed between October 16 and 19, 2026, rests on two legal arguments. First, the company asserts federal preemption under the Commodity Exchange Act. Second, it invokes the Dormant Commerce Clause to argue against state interference in national commerce.
This legal action follows a September 25, 2026, ruling by the Sixth Circuit in KalshiEx LLC v. Schuler, which determined that sports event contracts are not swaps under federal law and that the CEA does not preempt state gaming regulations.
On October 2, 2026, the Ohio Casino Control Commission issued cease-and-desist letters to 10 prediction market operators, including Polymarket, demanding compliance by October 16. The regulator classifies these contracts as unlicensed sports gaming.
