New York sues Polymarket for allegedly running illegal gambling operation
New York sued Polymarket for operating an unlicensed gambling business, seeking fines, restitution, and a court order to halt operations.Summary
New York filed a lawsuit against prediction market platform Polymarket on September 24, 2026, alleging the company operated an illegal gambling business without obtaining a gaming license from the state's commission or paying associated taxes. The lawsuit also claims the platform violates laws prohibiting gambling for users under 21. Governor Kathy Hochul criticized the platform for exploiting consumers and endangering public services, while Attorney General Letitia James emphasized that gambling laws protect New Yorkers from problem gambling and ensure funding for educational programs. The state seeks a court order halting Polymarket's operations, forfeiture of all illegal gains, restitution to harmed consumers, and fines equal to three times its illegal earnings. Polymarket's chief legal officer Neal Kumar called the lawsuit a "recycled lawsuit" and pledged to fight for users while engaging directly with the state. This case is part of a broader legal conflict between states and prediction market platforms over whether state gambling laws or federal Commodity Futures Trading Commission regulations should govern these platforms, with the CFTC under the Trump administration siding with the platforms. Earlier, New York sued similar platforms Kalshi, Coinbase, and Gemini. Contradictory rulings from the 3rd and 9th Circuit Courts of Appeals have complicated the legal landscape, and New Jersey recently petitioned the Supreme Court to resolve the dispute.
(Source：WJLA)