QCX LLC, which operates as Polymarket US, has sued Ohio officials in federal court to block the state from applying its sports-gaming licensing rules to the exchange’s sports-event contracts. The complaint contends that Ohio’s regime discriminates against out-of-state operators and is preempted by the Commodity Exchange Act.
The case, QCX LLC v. Wilson, was filed Oct. 16 in the U.S. District Court for the Southern District of Ohio. The federal docket lists it as case 2:26-cv-01502, assigned to Judge Douglas R. Cole, and identifies Blockratize Inc. as QCX’s corporate parent.
The suit names Ohio Attorney General Andy Wilson, Ohio Casino Control Commission interim Executive Director Andromeda Morrison and the commission’s seven members in their official capacities. It followed an Oct. 2 cease-and-desist notice requiring Polymarket US to stop offering sports-event contracts to Ohio residents without a state licence and to confirm compliance within 14 days.
Ohio’s letter warned that failure to comply could bring administrative, civil, nuisance or criminal proceedings. It also raised the prospect of a civil penalty equal to the money obtained from offering the contracts in the state.
QCX argues that a type A online sports-gaming licence is effectively unavailable to it. Applicants must maintain an operational Ohio business location or operate a sports-gaming facility in the state, while the commission considers applicants’ physical presence, length of operation and economic contribution in Ohio. The state may license up to 25 type A proprietors unless it determines market conditions warrant more.
Polymarket US says the practical route for national brands is to operate as a management-services provider under an Ohio proprietor. Its complaint identifies FanDuel, DraftKings, BetMGM, Caesars, bet365, Fanatics and ESPN Bet as using that model. The company says it neither holds an Ohio licence nor could obtain one, and that complying would require it to stop serving Ohio customers and unwind open positions, or continue operating while exposed to enforcement.
The company’s second principal claim is that federal law gives the Commodity Futures Trading Commission exclusive authority over swaps traded on designated contract markets. The CFTC designated Polymarket US as a contract market on July 9, 2025, according to the complaint.
QCX also points to the CFTC’s Oct. 9 interim final rule and accompanying proposal addressing event contracts as swaps. The interim rule, effective Oct. 19, excludes state-licensed sportsbook wagers and casino games from the definition of a swap. Polymarket US argues that the Sixth Circuit’s Sept. 25 decision against Kalshi was decided before that regulatory action, under what it calls a different legal landscape; Kalshi has sought panel and en banc rehearing.
The complaint seeks declarations that Ohio Revised Code chapters 2915, 3767 and 3775, along with Administrative Code rule 3775-1-08, are unconstitutional as applied to Polymarket US and preempted by federal law. It asks for preliminary and permanent injunctions against enforcement, plus legal fees and costs. Squire Patton Boggs and Gibson, Dunn & Crutcher represent QCX.
The litigation comes after Ohio sent notices to 10 companies and brokers. Most remained available after the Oct. 16 deadline, while Plus500US told the commission it would stop offering sports contracts. Ohio officials have maintained that the activity is sports betting requiring a state licence; Gov. Mike DeWine called it “pure and simple gambling.”
Ohio sports gaming launched on Jan. 1, 2023, under a framework that permits licensed online and brick-and-mortar operators. The CFTC’s comment period on its interim event-contract rule runs through Nov. 18.
