New York files lawsuit against Polymarket, calling it an illegal gambling operation
New York sued prediction platform Polymarket, alleging it operates as an unlicensed illegal gambling business.Summary
New York state authorities filed a lawsuit against prediction market platform Polymarket in state court, accusing it of operating as an illegal gambling business without a state gaming license. The suit seeks financial penalties and consumer restitution, and asks a judge to halt Polymarket's operations. Gov. Kathy Hochul stated that by running an unlicensed operation, Polymarket puts New Yorkers at risk, especially minors vulnerable to problem gaming. Polymarket's Chief Legal Officer Neal Kumar vowed to "fight for our users," noting the company was founded in a NYC apartment and now employs over 350 people there. Prediction market operators argue their model is peer-to-peer trading akin to a stock exchange—users buy and sell contracts based on future developments, with revenue derived solely from transaction fees—distinct from standard betting. They further assert that primary regulation falls under federal jurisdiction, specifically the U.S. Commodity Futures Trading Commission, which has resisted state-level oversight. The CFTC did not respond to a comment request. Similar lawsuits have previously been filed by state officials against other prominent platforms including Kalshi, Coinbase, and Gemini.
(Source：The Independent)