New York sues Polymarket, alleging illegal gambling operation
publishers 11articles 11first reported 24 Sep, 16:03 UTCdeveloping since 24 Sep · 6 editions
New York Attorney General Letitia James sued Polymarket U.S. on Thursday, alleging that the prediction market operates an unlicensed gambling platform in violation of state law.
The lawsuit seeks a court order blocking Polymarket from operating as an unlicensed gambling business in New York. It also requests an accounting of trades made on the platform, customer losses and company earnings, along with financial penalties that could include three times Polymarket’s gains and $100,000 for each alleged offer or attempt to offer sports wagering in the state.
State officials said Polymarket is not licensed by the New York State Gaming Commission and allows users as young as 18 to participate, while New York requires mobile sports-betting customers to be at least 21. Governor Kathy Hochul said the operation put New Yorkers, particularly younger users vulnerable to problem gambling, at risk.
Polymarket U.S., which debuted in December 2025, is regulated by the federal Commodity Futures Trading Commission. Prediction-market companies contend that federal oversight preempts state gambling regulation, while New York and several other states have pursued enforcement actions. New York previously brought similar cases against Kalshi, Coinbase Financial Markets and Gemini Titan.
Polymarket chief legal officer Neal Kumar called the lawsuit recycled and said the company would fight for its users. He said Polymarket had sought to address the state’s concerns directly and remained committed to operating in New York.
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Written from 8 articles, 3 with the publisher's own text; 8 independent newsrooms once syndicated copies count as one; this version written 24 h after the record first saw the story; the editor revised it.
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