The Gambling Wire: Polymarket Takes Ohio to Court, CFTC Opens the Floor and Kalshi Hits Snooze on SCOTUS

Polymarket takes its fight with Ohio to constitutional grounds, the CFTC weighs the future of event contracts and Kalshi buys more time in its Supreme Court battle, while regulators on both sides of the border hold their ground.

Polymarket has a new constitutional argument, the CFTC wants everyone’s opinion and Kalshi is in no hurry to reach the Supreme Court. Meanwhile, Washington is pushing back against Novig and Canada is making its position on sports event contracts abundantly clear.

The legal battles surrounding prediction markets show little sign of slowing down. Polymarket is taking aim at Ohio’s sports betting laws, the CFTC is inviting public comment on the future of event contracts and state regulators are continuing to defend their turf.

Elsewhere, Kalshi wants more time in its Supreme Court proceedings, the Lumbee Tribe has taken a major step toward gaming and Fanatics is promising customers they won’t have to pay extra for fairness.

The Big Story: Polymarket Takes Ohio’s Sports Betting Laws to Court on Constitutional Grounds

Polymarket has found another way to challenge state gambling regulation, this time by reaching for the US Constitution. In a new complaint filed against Ohio regulators, the prediction market operator argues that the state’s online sports betting framework violates the Commerce Clause by requiring licensees to maintain an in-state physical presence and servers.

Polymarket describes the requirements as “unlawful protectionism,” arguing that Ohio is discriminating against interstate commerce by effectively requiring nationally operating businesses to establish a local footprint.

The argument introduces a new dimension to the industry’s growing collection of courtroom disputes. While much of the litigation surrounding Kalshi and Polymarket has focused on whether federal commodities law preempts state gambling regulation, this challenge questions whether the state’s licensing framework is itself constitutional.

In other words, Polymarket is questioning whether Ohio’s rules for entering the market should exist in their current form at all.

The Daily Wire

CFTC Opens Comment Periods as Prediction Markets Await the Rulebook

The CFTC is giving the industry another opportunity to weigh in on the future of event contracts, with two comment periods addressing casino-style gambling products and event contracts open until November 18.

The proceedings come as regulators, exchanges and sportsbooks continue to disagree over where financial trading ends and gambling begins. For prediction market operators, the stakes are considerable. The agency’s eventual approach could influence which contracts exchanges are permitted to list and how the federal government distinguishes financial products from gambling.

With the industry already generating more than enough legal opinions, the CFTC is now formally requesting a few more.

Washington Moves to Dismiss Novig Lawsuit

Washington State has filed a motion to dismiss Novig’s lawsuit over sports prediction markets, adding another chapter to the ongoing jurisdictional dispute between states and federally regulated exchanges.

Washington is seeking to defend its regulatory position, while prediction market operators continue turning to federal courts to challenge state restrictions.

Canada Makes Its Position on Sports Event Contracts Clear

While US courts continue debating who gets to regulate sports prediction markets, Canada is taking a somewhat less ambiguous approach. The Canadian Investment Regulatory Organization has updated its requirements to explicitly prohibit sports event contracts.

The clarification reinforces the distinction Canadian regulators are drawing between permitted investment products and contracts tied to sporting outcomes. For an industry accustomed to arguing over regulatory grey areas, Canada’s message leaves considerably less room for interpretation.

Kalshi Asks Supreme Court for More Time

Kalshi is apparently in no rush for its next date with the nation’s highest court. The prediction market operator has requested a month-long extension in its Supreme Court proceedings, as its dispute with state gambling regulators continues.

Kalshi has filed rehearing petitions asking the Sixth and Ninth Circuits to review their latest rulings, citing the forthcoming CFTC rules. Nevada has already pushed back on the Ninth Circuit request, arguing that the pending regulation “would not change the outcome here.”

Lumbee Tribal Council Approves Historic Gaming Ordinance

The Lumbee Tribal Council has approved a gaming ordinance in a 14-2 vote. Once certified, the ordinance will be put to Lumbee voters in a referendum 45 days later, with the tribe’s Election Board responsible for setting the official date. Tribal officials expect the vote to take place between December 10 and 15, 2026.

The October 19 decision comes as the prospect of a future casino development remains under consideration. The ordinance does not guarantee that a casino will materialize. However, the larger question of what comes next remains very much on the table.

Polymarket and Athlete Endorsers Face Backlash Over Cornell 7 Market

Polymarket is facing scrutiny on another front, this time over the types of events available for trading on its platform. According to Front Office Sports, the operator and its athlete endorsers have come under fire over a market involving the Cornell 7. It has since been removed, according to FOS reporter Ben Horney.

The market, which was unavailable on Polymarket’s US app, launched on Sept. 30 and had attracted $451,633 in trading volume by early Monday afternoon. At the time, traders assigned a roughly 28% probability to at least one member of the Cornell 7 being charged with a felony sex crime by Jan. 31, 2027, the market’s scheduled closing date.

Novig Expands IC360 Partnership as Integrity Takes Centre Stage

Novig and IC360 have expanded their partnership to strengthen trust, safety and integrity protections across sports prediction markets. The agreement comes as the sector faces growing scrutiny over market surveillance, suspicious trading and the safeguards needed to protect sporting competitions. Kalshi announced in March that it had partnered with the integrity firm.

In an earlier statement, Kalshi said: “IC360 shares with Kalshi alerts triggered on other platforms that offer sports markets, so Kalshi is alerted to suspicious activity in markets that are live on other trading exchanges and platforms.”

Fanatics Promises Free Player Protection, Takes Aim at the Competition

Fanatics Sports is making a point about fairness, and making sure customers know it. In an announcement issued Oct. 19, the company pledged to provide full-game player protection at no additional fee throughout the season.

The initiative enters an increasingly competitive conversation around how operators handle player injuries and the protections available to customers when athletes leave games early. Fanatics’ positioning is that customers shouldn’t have to pay extra for fairness. Whether competitors agree with that definition of fairness is another matter entirely.

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