Prediction Market Platforms File Federal Lawsuits to Block Gambling Law Enforcement in Arkansas and Missouri
Prediction market platforms filed federal lawsuits in Arkansas and Missouri to block state gambling law enforcement, citing federal preemption.Summary
This week, Polymarket US, Crypto.com, Underdog, and Robinhood filed federal lawsuits in Arkansas and Missouri seeking injunctions against state gambling law enforcement. The filings follow Arkansas's state court lawsuit against Kalshi last week. The complaints argue that the Commodity Exchange Act (CEA) preempts state gambling laws and that enforcement violates the Supremacy Clause. Polymarket US sued both states, Crypto.com sued Arkansas, and Underdog and Robinhood sued Missouri. The platforms contend that state enforcement would cause irreparable harm by disrupting federally authorized operations and fragmenting national markets. A recent CFTC notice on geofencing may influence how courts balance the harms in these cases.
(Source：Sccg Management)