New York sues Polymarket over alleged illegal gambling business
The action filed by state lawmakers followed a similar lawsuit against prediction markets company Kalshi in July that alleged the platform was running an illegal gambling operation.
New York Attorney General Letitia James has filed a lawsuit against Polymarket, alleging the prediction markets platform is engaging in an illegal gambling operation by offering contracts related to sporting events. The lawsuit follows a similar action against Kalshi in July and litigation against platforms operated by Coinbase and Gemini in April.
The complaint cites Polymarket's sporting event contracts on its mobile app launched in December 2025, as well as its advertising practices targeting New Yorkers. State officials may seek to block the platform for residents. The case highlights ongoing disagreements between US state authorities and federal agencies, specifically the Commodity Futures Trading Commission, over jurisdiction in regulating prediction markets.
New Jersey officials have also petitioned the US Supreme Court to clarify authority over the industry.
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