New York, Polymarket file dueling lawsuits amid illegal gambling claims
New York sued Polymarket for running unlicensed gambling, while the platform countersued citing federal regulatory authority.Summary
New York Attorney General Letitia James filed a lawsuit against prediction market platform Polymarket, alleging it has been operating as an unlicensed gambling operation without a license from the New York State Gaming Commission. The suit accuses the platform, valued at over $20 billion, of encouraging gambling among users as young as 18, despite state law requiring users to be at least 21 for mobile sports betting. James' office has also filed similar suits against Polymarket competitors Kalshi, Coinbase, and Gemini Titan. Governor Kathy Hochul stated that by running an unlicensed operation, Polymarket has put New Yorkers at risk, especially those underage.
Polymarket filed a countersuit hours later in Manhattan federal court, arguing that the Commodity Futures Trading Commission has exclusive authority to regulate prediction markets. The platform said New York left it an "impossible choice" between obeying state regulators or facing potential criminal liability. Chief Legal Officer Neal Kumar said the company tried to resolve differences with state officials but "they preferred the media hit." The case reflects a growing national conflict between states and the federal government over the regulation of prediction markets, with similar suits filed by states including Arizona, Massachusetts, and Nevada.
The lawsuit also comes days after a Wall Street Journal report alleging that a wave of users linked stolen bank debit cards to make wagers, with CEO Shayne Coplan reportedly responding: "Just keep growing and pay a fine if regulators ever find out." Polymarket has close ties with President Donald Trump's family through 1789 Capital, a venture capital firm backed by Donald Trump Jr., who also serves on the company's advisory board.
(Source：Al Jazeera)