Polymarket and Crypto.com-backed OG.com filed separate federal lawsuits against Arkansas on Nov. 9, seeking to prevent state officials from restricting their prediction markets under local gambling laws.
Both complaints name Attorney General Tim Griffin and seven members of the Arkansas Racing Commission. They follow Griffin’s Nov. 4 lawsuit against Kalshi, which accuses the prediction market operator of offering illegal gambling to Arkansas residents.
The two companies maintain that their federal exchange registrations place their event contracts under the jurisdiction of the Commodity Futures Trading Commission (CFTC), rather than state gambling authorities.
Neither company has been sued by Arkansas. Instead, both are seeking court protection before Griffin takes further enforcement action.
Arkansas’ position dates back to an Oct. 23, 2025 opinion in which Griffin concluded that a prediction market business model like Kalshi’s constitutes gambling and requires a state license.
His office subsequently sued Kalshi under the Arkansas Deceptive Trade Practices Act, alleging unlawful wagering and misleading consumer practices, and separately claimed unjust enrichment.
Griffin accused Kalshi of accepting customers as young as 18, despite Arkansas requiring sports bettors to be at least 21. The state wants restitution, financial penalties, unpaid taxes and an injunction against the company’s activities.
The Kalshi lawsuit is the first enforcement case brought by Arkansas against a major prediction market operator. OG.com and Polymarket are now separately challenging the state’s authority to pursue similar action against them.
Polymarket challenges Arkansas enforcement threat
Polymarket US filed its 37-page complaint in the Western District of Arkansas, arguing that Griffin’s actions present an immediate threat to its federally regulated business.
The company operates through QCX LLC, a CFTC-designated contract market acquired as part of Polymarket’s return to the US market.
Its complaint challenges Arkansas’ authority to regulate contracts involving sports, elections and other events. Polymarket argues that Congress reserved oversight of exchange-traded derivatives for federal regulators under the Commodity Exchange Act (CEA).
The company points to an Oct. 19 CFTC interim final rule distinguishing exchange-traded derivatives from conventional sportsbook wagers and casino games. It also cites a proposed CFTC rule explicitly recognizing event contracts involving sports, politics, culture and weather as swaps subject to federal oversight.
Polymarket contends that Griffin’s lawsuit against Kalshi threatens its own operations, exposing the company to potential criminal proceedings, financial penalties and restrictions on customer access.
The complaint also references possible penalties of up to $10,000 per violation under the Arkansas Deceptive Trade Practices Act.
Polymarket wants preliminary and permanent injunctions preventing Arkansas officials from enforcing gambling restrictions against its federally regulated activities.
The filing comes alongside another legal challenge by Polymarket against Missouri. On Nov. 9, the company sued Missouri Attorney General Catherine Hanaway and state gaming regulators over efforts to classify sports event contracts as unlicensed gambling.
Hanaway had sent cease-and-desist letters to six prediction market businesses in September, demanding that they stop offering sports contracts or comply with Missouri’s licensing requirements. Polymarket’s Missouri complaint followed unsuccessful discussions with the attorney general’s office.
OG.com had already challenged Missouri’s position, filing its own federal lawsuit on Oct. 16. Kalshi, Novig, Underdog and Robinhood have also brought proceedings against the state’s enforcement efforts.
OG.com seeks protection from Arkansas gambling laws
North American Derivatives Exchange, operating as OG.com Prediction Markets, brought its separate 59-page lawsuit in the Eastern District of Arkansas. The Crypto.com-backed platform argues that Arkansas cannot impose licensing requirements on contracts traded through its federally registered exchange.
Unlike Polymarket, which emphasizes recent CFTC rulemaking, OG.com devotes considerable attention to the history of federal derivatives regulation.
OG.com operates through the North American Derivatives Exchange (Nadex), which was originally designated by the CFTC as HedgeStreet in 2004. Crypto.com acquired Nadex in 2022, and its designation order was amended in September 2025.
OG.com subsequently introduced a dedicated events market platform in February 2026, providing access to event contracts separate from its other exchange offerings.
Its existing rulebook covers more than 50 event contracts, including products tied to sporting events. The complaint explains that OG.com began certifying contracts under its “Industry Event – Live Presentations” category in January 2025.
Those contracts encompass sporting competitions, entertainment awards and other live events. Subsequent filings in July and August 2025 expanded the exchange’s sports-related offerings.
OG.com maintains that these products were introduced through the CFTC’s self-certification process and have not been prohibited by the federal regulator. The exchange also argues that forcing it to close customers’ outstanding contracts could conflict with CFTC requirements governing market operations.
Its lawsuit references CFTC orders directing Kalshi to continue fulfilling certain exchange obligations despite state enforcement efforts in New York and Michigan.
OG.com further points to Arkansas’ participation in multistate legal briefs supporting gambling regulators in prediction market disputes.
The company cites Griffin’s involvement in challenges involving New Jersey, Nevada and other states as evidence of Arkansas’ broader opposition to federally regulated sports contracts.
Its complaint seeks a declaration that the state’s gambling restrictions are preempted by federal law and a permanent injunction preventing their enforcement against OG.com.