Mass. sports betting war escalates with Polymarket suit
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Tiffany Herring/Axios
Massachusetts is cracking down on prediction markets that are emerging as rivals to sports betting giants like DraftKings and FanDuel.
Why it matters: In turn, prediction market platforms Kalshi and Polymarket are fighting back, maintaining they should be regulated by the federal government, not the state's gaming regulators.
- It's a decision that could reshape the future of legal sports betting.
Driving the news: Polymarket sued Massachusetts Attorney General Andrea Joy Campbell in Boston federal court Monday, accusing the state of overstepping its bounds in trying to regulate prediction markets.
- The lawsuit comes weeks after a Suffolk Superior Court judge temporarily blocked Kalshi from offering sports wagers in Massachusetts.
What they're saying: "Racing to state court to try to shut down Polymarket US and other prediction markets doesn't change federal law ..." Neal Kumar, chief legal officer at Polymarket, wrote on X Monday morning.
- The company argues that Congress gave the Commodity Futures Trading Commission exclusive authority over prediction markets, not state gaming commissions.
- Campbell's office did not immediately respond to emails seeking comment.
Zoom out: The U.S. sports betting market, which was legalized less than eight years ago, has grown into a multibillion-dollar industry.
- The market generated nearly $14 billion in gross revenue in 2024, with billions in tax revenue across legal betting states.
- Prediction markets have spread like wildfire in the past year, drawing bets on anything from the Oscars to the New York City mayoral race.
- Online sportsbooks argue these companies have captured some of their users without obtaining state gambling licenses.
What we're watching: CFTC chair Michael S. Selig said last month that the federal commission is modernizing its regulations related to prediction markets.
- That could bring clarity over who oversees Kalshi and Polymarket — and complicate states' efforts to regulate betting on sports events even more.