New York Sues Polymarket Over Alleged Illegal Gambling
New York alleged Polymarket operates as gambling and is seeking to block the platform in the state.
New York Attorney General Letitia James has sued Polymarket US, alleging its prediction markets amount to unlicensed gambling and seeking to block the platform from operating in the state.
What’s the Scoop?
New York calls it gambling: In its lawsuit against Polymarket US, New York argues that Polymarket’s event contracts meet the state’s definition of gambling (users put money on uncertain outcomes outside their control) and that Polymarket offers these markets, though is not licensed by the New York State Gaming Commission.
Underage betting and taxes: The state also argues that Polymarket lets 18- to 20-year-olds trade sports markets even though New York requires mobile sports bettors to be 21, while avoiding the taxes imposed on licensed sportsbooks.
What New York wants: The state is asking the court to stop Polymarket from operating without a state gambling license and order restitution, disgorgement, and penalties, including up to three times the gains New York alleges came from illegal activity and $100K for each unauthorized offer or attempted offer of sports wagering.
Another front in the prediction-market fight: Polymarket US operates through QCX, a CFTC-designated contract market, putting the case inside the broader fight over whether federally regulated prediction markets must also comply with state gambling laws. New York has already pursued a similar case against Kalshi, while the CFTC continues to argue that prediction markets fall under federal jurisdiction.
