New York sues Polymarket over alleged illegal gambling business

New York Attorney General Letitia James is suing prediction markets platform Polymarket for offering contracts related to sporting events.On Thursday, New York state officials filed a lawsuit against Polymarket, alleging that the company’s prediction market event contracts violated state gambling laws. The lawsuit followed a similar action against Kalshi in July and litigation against prediction market platforms run by Coinbase and Gemini in April. Thursday’s filing cited Polymarket’s sporting event contracts on its mobile app launched in December 2025, including its advertising practices to New Yorkers. According to the filing, state officials could also seek to block the platform to residents.“[Polymarket] seeks to avoid the legal and financial consequences of New York’s close regulation of gambling by offering what is quintessentially wagering under the guise of ‘event contracts’ on a ‘prediction market,’” said the filing.The case against Polymarket is the latest example of US state authorities at odds with federal agencies over who has authority in regulating and overseeing prediction markets. US Commodity Futures Trading Commission Chair Michael Selig has claimed that the fede...