Polymarket Pushes New York Dispute Into Federal Court
The Polymarket lawsuit pits New York gambling laws against federal commodities authority in a court fight over prediction-market contracts. The post Polymarket Pushes New York Dispute Into Federal Court appeared first on ReadWrite .
New York has filed a lawsuit against Polymarket, accusing the company of operating an illegal gambling business without a state gaming license. Polymarket responded by moving the case to federal court and separately suing New York's gaming officials. This legal battle follows a similar dispute New York had with rival platform Kalshi earlier this year, and it raises questions about whether state gambling law or federal commodities regulation governs prediction markets.
New York seeks an injunction, restitution, disgorgement, and penalties of up to $100,000 for each unauthorized offer of sports wagering. The company argues that Polymarket's platform allows users as young as 18 to trade, despite New York's requirement that mobile sports bettors be at least 21. To address the jurisdictional issue, Polymarket moved the case to the Southern District of New York, claiming federal jurisdiction due to the Wire Act claim alongside questions about the Commodity Exchange Act and the Commodity Futures Trading Commission's authority over event contracts.
The company has also separately sued New York gaming officials, seeking a declaration and injunction to block state enforcement of gambling laws, arguing that the Commodity Exchange Act gives the CFTC exclusive jurisdiction over its contracts. This legal dispute adds to New York's broader legal action against prediction-market operators, including cases against Kalshi, Coinbase, and Gemini, as well as a separate lawsuit from the CFTC against the state.
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