Polymarket has filed a lawsuit against the state of New Mexico in federal court to prevent authorities from enforcing gambling laws against its platform.
Polymarket has filed a lawsuit against Attorney General Raul Torrez and six members of the New Mexico State Gaming Control Board, alleging that prediction markets should fall under the exclusive jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC) and not the individual states.
Polymarket has requested that the court issue a ruling stating that gambling laws will not apply to market, as it would disrupt liquidity and banking relationships and hurting users’ trust in CFTC regulated markets.
The lawsuit comes on the heels of New Mexico taking legal action against Kalshi, which has been accused by New Mexico of operating illegally by offering contracts on sports betting.
Prior to initiating this litigation, Polymarket sent two requests for delay of enforcement from New Mexico in light of the Kalshi case, which were both denied.
Polymarket argues that these actions by New Mexico are an attempt to shut down federally authorized prediction markets in direct conflict with what Polymarket believes is an unequivocal federal regulatory scheme governed by the CFTC.