Polymarket, Robinhood Denied Shield From Michigan Regulators (2)

Polymarket’s US division failed to convince a federal judge to reverse course and grant it some temporary protection against Michigan state gaming officials seeking to crack down on its sports prediction markets like gambling operations.

The statutory definition of the financial instrument that Polymarket claims its prediction markets offer is ambiguous, and the company’s reading that sports event contracts fit the bill would render it meaningless, Judge Paul L. Maloney said Wednesday, denying the company a preliminary injunction.

Just because an event contract is traded on a federally-designated market doesn’t turn prediction markets’ offerings into a “swap” either, the US ...