New York Sues Polymarket, Alleging Illegal Gambling Operations

New York Attorney General Letitia James and Governor Kathy Hochul have filed a lawsuit against the prediction market platform Polymarket, accusing it of operating an unlicensed gambling business within the state. The complaint alleges that the platform failed to obtain necessary licenses from the New York State Gaming Commission and bypassed taxes required of legal sportsbooks. Additionally, the state claims the platform violates age restrictions by allowing users under 21 to participate. While Polymarket and the Commodity Futures Trading Commission maintain that these platforms offer federally regulated event contracts, New York officials are seeking to bar the platform from operating in the state, demanding the forfeiture of illegal gains, and requesting additional fines.