New York, Polymarket Trade Lawsuits Over Legality of Prediction Market
New York sued Polymarket for operating unlicensed gambling, and Polymarket countersued the state the same day.Summary
New York state filed a lawsuit against prediction market Polymarket on September 24, alleging it operates an illegal gambling business. Attorney General Letitia James seeks to halt Polymarket's operations in the state, compel payment of fines, forfeiture of illegal gains, and restitution to users. The action follows similar suits James previously filed against other prediction platforms including Kalshi, Coinbase, and Gemini Titan. Governor Kathy Hochul stated that Polymarket's unlicensed gambling puts New Yorkers, especially minors, at risk. Polymarket moved the case to federal court and filed its own suit against James and other state officials, arguing it has a federal right to operate nationwide. The company launched its U.S. platform in December 2025, offering wagers on topics ranging from sports to cultural events, and reportedly generates over $1 billion in annual revenue that New York argues it has not taxed. Polymarket's chief legal officer said the company is open to direct discussions with the state. The article also notes that James separately sued video game developer Valve in January over alleged gambling mechanics targeting minors.
(Source：The Epoch Times)