New York and Polymarket file dueling lawsuits over prediction-market regulation
publishers 15articles 16first reported 24 Sep, 16:03 UTCdeveloping since 24 Sep · 6 editions
New York sued Polymarket on Thursday, accusing the prediction-market platform of operating an unlicensed gambling business and violating state law. Polymarket responded hours later with a federal lawsuit arguing that state officials lack authority over its federally regulated event contracts.
Attorney General Letitia James and Governor Kathy Hochul said Polymarket offers what amounts to sports wagering without a license from the New York State Gaming Commission. The state’s lawsuit also alleges that the platform permits participation by users ages 18 to 20, while New York requires mobile sports-betting customers to be at least 21.
New York is seeking an order barring Polymarket from operating as an unlicensed gambling business in the state, along with restitution, forfeiture of alleged illegal profits and financial penalties. The state also wants records detailing trades, customer losses and Polymarket’s earnings.
Polymarket denies that its contracts constitute illegal gambling. In its federal complaint against James and the Gaming Commission, the company said the Commodity Futures Trading Commission has exclusive authority over federally regulated derivatives exchanges and argued that New York’s enforcement effort is precluded by federal law.
The dispute follows New York’s similar July lawsuit against rival prediction market Kalshi, as states and federal regulators contest who has authority over sports-related event contracts. Polymarket U.S., which launched in December 2025, is regulated by the CFTC. Polymarket Chief Legal Officer Neal Kumar said the company would fight New York’s lawsuit while remaining in the state.
HOW THIS STORY WAS MADE
Written from 8 articles, 4 with the publisher's own text; 8 independent newsrooms once syndicated copies count as one; this version written within the hour the record first saw the story; the editor kept it as written.
- Publishers
- 15
- Source articles
- 16
- Given to the writer
- 8, 4 with the article's own text
- Independent newsrooms
- 8
- This version written
- within the hour the record first saw the story
- Second model (editor)
- kept as written
- Publication gate
- passed
- Human review
- none
Written by a language model from the sources above, then checked by a second model that may only cut, attribute or correct. How it works →