New York Sues Polymarket U.S., Citing Illegal Gambling Platform
New York has filed a lawsuit against prediction market platform Polymarket U.S., accusing it of operating an unlicensed gambling service that violates state laws. The case follows New York's earlier legal action against Kalshi, another competitor in the space. Attorney General Letitia James claimed Polymarket is targeting vulnerable individuals and depriving families of essential services by circumventing regulations requiring a license from the New York State Gaming Commission. The lawsuit also highlights that Polymarket allows users under 21 to participate—contrary to state law—which puts younger, high-risk demographics at greater danger. The suit seeks penalties including tripled gains and $100,000 fines for each instance of offering sports wagering in the state. Polymarket U.S., which launched in December 2025 under federal CFTC regulation, has defended its operations as legal while vowing to fight New York's lawsuit. This case is part of a broader regulatory conflict between states and prediction market platforms, with the CFTC countering by suing several states over jurisdictional disputes. Polymarket remains committed to operating in New York despite the legal challenges.
Topics: Consumer Protection Gambling Prediction Markets State Laws