New York sues Polymarket over alleged illegal gambling business
New York Attorney General Letitia James has sued Polymarket, arguing its sports-related prediction contracts amount to illegal gambling under state law. State officials say Polymarket’s mobile app, launched in December 2025, offered these contracts to New Yorkers and marketed them in a way that sought to evade gambling regulations by labeling wagering as “event contracts” on a “prediction market.” The filing could also support blocking the platform from residents in New York. The case follows similar state actions against Kalshi and against prediction market platforms tied to Coinbase and Gemini. It also highlights a broader fight between state authorities and federal regulators over who controls prediction markets, as the CFTC has claimed exclusive federal jurisdiction.
