New York Sues Polymarket, Alleging Unlicensed Gambling Operations
State officials seek a court order halting the platform's domestic entity, marking New York's fourth legal action against prediction markets this year.
New York state officials have filed a lawsuit against the domestic branch of prediction market platform Polymarket, alleging the company operates an unlicensed gambling business. As reported by Engadget (https://www.engadget.com/2268006/new-york-continues-to-fight-prediction-markets-with-a-lawsuit-against-polymarket/), the action was announced jointly by New York Attorney General Letitia James and Governor Kathy Hochul.
The state is seeking a court order to halt Polymarket from operating in New York. The lawsuit represents the state's fourth illegal gambling enforcement action against prediction trading venues, following a July lawsuit against Kalshi and April actions targeting Coinbase Financial Markets and Gemini Titan.
State officials argue that prediction platforms allow underage wagering. While many prediction markets permit users aged 18 and older, the legal threshold for sports betting across several states is 21.
The legal offensive comes amid broader jurisdictional tension between state authorities and federal regulators. The Commodity Futures Trading Commission has counter-sued multiple states, asserting that the federal agency holds exclusive regulatory authority over prediction markets and that state actions exceed local jurisdiction.
Federal courts remain divided on the issue. A panel from the U.S. Court of Appeals for the Third Circuit previously sided with the CFTC against New Jersey, whereas the Ninth Circuit Court of Appeals ruled in favor of Nevada regulators against Kalshi, upholding the state's authority to enforce its gambling laws.
Sources
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