New York Sues Polymarket Over Alleged Illegal Gambling; Polymarket Countersues

New York Attorney General Letitia James and Governor Kathy Hochul have sued Polymarket, alleging the platform operates an unlicensed gambling business. The state seeks to bar Polymarket from New York and obtain restitution for customer losses. In response, Polymarket has filed a federal lawsuit against state officials, arguing that its event contracts are federally regulated derivatives and not subject to state gambling laws.