Polymarket US and OG.com sue Arkansas to block gambling enforcement
Two CFTC-regulated exchanges filed federal suits on November 9 asking courts to stop Arkansas from applying its gambling laws to their event contracts.
Two federally regulated prediction market exchanges sued Arkansas officials on November 9, 2026, five days after the state’s attorney general sued Kalshi under its gambling laws. Both ask federal judges to declare that the Commodity Exchange Act preempts Arkansas law as applied to their event contracts.
QCX LLC, which does business as Polymarket US, filed its complaint in the Western District of Arkansas (No. 1:26-cv-01076). North American Derivatives Exchange, which runs the OG.com prediction market, filed its complaint in the Eastern District (No. 4:26-cv-1226). Both name Attorney General Tim Griffin and seven members of the state racing commission, all in their official capacities.
Suing before the state does
Neither exchange says Arkansas has sued it. Both point to the November 4 case against Kalshi in Independence County circuit court as proof that enforcement is coming. Polymarket US also cites Griffin’s October 23, 2025 formal opinion, which concluded that the business model of federally designated contract markets amounts to gambling that requires a state license.
Polymarket US argues it faces “a real and imminent risk of enforcement,” including civil penalties, criminal prosecution and being forced to stop operating in Arkansas. OG.com argues that Arkansas “will take the same action” against it, and notes Griffin signed a July 27, 2026 letter from dozens of states telling the CFTC it lacks authority for its proposed rule treating event contracts as swaps.
The legal theory
Both complaints rest on the CFTC’s “exclusive jurisdiction” over trading on designated contract markets. Polymarket US brings one preemption claim under 42 U.S.C. § 1983 and leans on the CFTC’s October 19 interim final rule and proposed rule, which it says settle that its event contracts are swaps. OG.com pleads three counts: express, field and conflict preemption. Both rely on the Third Circuit’s ruling in KalshiEX v. Flaherty.
Polymarket US asks for a declaration and preliminary and permanent injunctions covering Arkansas Constitution Amendment 100 and several state gambling statutes. OG.com asks for a declaration and a permanent injunction.
What it means for traders
The exchanges are not waiting to be sued: they want a federal court to rule on preemption before Arkansas can take them to state court, as it did with Kalshi. Polymarket US warns that cutting off Arkansas users would reduce liquidity on its exchange. As of November 10, neither docket shows a ruling.
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