New York Wants to Ban Polymarket, Lawsuit Calls It 'Illegal Gambling Operation'
New York has sued Polymarket, accusing it of operating an unlicensed gambling business through its prediction-market platform. Attorney General Letitia James and Governor Kathy Hochul say the company lets users place money on uncertain outcomes outside their control, which fits New York’s gambling definition. The state argues Polymarket has exposed New Yorkers, including underage users, to financial and personal risk while avoiding state licensing, taxes, and oversight. The suit seeks to bar the company from operating in New York, recover its profits, provide restitution to users, and impose triple damages. Officials also say prediction markets are increasingly being challenged as illegal gambling, even as companies argue they are federally regulated by the CFTC. New York has already taken similar action against Kalshi, Coinbase, and Gemini.
