New York sues Polymarket, alleging it is running an illegal gambling operation
New York's Attorney General and Governor sued Polymarket, alleging it operates an unlicensed gambling platform in the state.Summary
New York Attorney General Letitia James and Governor Kathy Hochul filed a lawsuit Thursday against QCX LLC, doing business as Polymarket US, alleging the prediction market platform is operating an illegal, unlicensed gambling business in the state. The state seeks to block Polymarket from operating without a gambling license, recover allegedly illegal gains, pay restitution to customers, and impose fines equal to three times those gains. The lawsuit argues that Polymarket's contracts on sporting event outcomes constitute gambling under state law, and notes that the platform allows users aged 18–20 while New York requires a minimum age of 21 for mobile sports betting. The case adds to a broader legal dispute over whether prediction markets should be regulated federally by the Commodity Futures Trading Commission (CFTC) or subject to state gambling laws. Prediction market companies argue their event contracts are federally regulated financial products, while states contend they are effectively bets subject to state gambling rules. New York has been among the most active states in this fight, having previously sued Kalshi in July seeking up to $36 billion in penalties, and a Kalshi–New Jersey case has been appealed to the U.S. Supreme Court.
(Source：Coindesk Indonesia)