● Covered by 2 sources · 2 reportsMedium impact1 negative1 neutral
New York Sues Polymarket Over Alleged Illegal Gambling Operations
Key points
- New York sued Polymarket for operating an unlicensed gambling business.
- The state seeks a court order to halt Polymarket's operations.
- New York has similar lawsuits against Kalshi, Coinbase, and Gemini.
- Federal and state courts are divided on prediction market regulation.
- New York Governor Kathy Hochul announced the lawsuit in a press release.
- Polymarket is available to users aged 18-20, but New York requires 21 for mobile sports betting.
- The CFTC asserted exclusive jurisdiction over prediction markets.
New Lawsuit Against Polymarket
New York Attorney General Letitia James and Governor Kathy Hochul announced a lawsuit against the domestic branch of Polymarket. The suit aims to obtain a court order to prevent Polymarket from operating as an unlicensed gambling business within New York state.
Broader State-Level Enforcement
This action is part of New York's ongoing efforts to regulate prediction markets, which it considers illegal gambling operations. The state has filed similar lawsuits against Kalshi, Coinbase Financial Markets, and Gemini Titan. Some state-level suits, including the one against Polymarket, also cite concerns about underage betting, as prediction markets typically require users to be over 18, while sports betting in many states requires users to be 21.
Federal Intervention and Divided Courts
The US Commodity Futures Trading Commission (CFTC) has counter-sued some states, asserting its sole authority to regulate prediction markets and challenging state jurisdiction. Court rulings on this issue have been inconsistent; the 3rd US Circuit Court of Appeals sided with the CFTC against New Jersey, while the 9th Circuit Court of Appeals recently favored Nevada's case against Kalshi.
Updates
- New York Governor Kathy Hochul announced the lawsuit in a press release.
- Polymarket is available to users aged 18-20, but New York requires 21 for mobile sports betting.
- The CFTC asserted exclusive jurisdiction over prediction markets.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
New York State filed a lawsuit against Polymarket, accusing its prediction market platform of operating an unlicensed gambling business and violating state laws. The state asserts Polymarket bypasses tax obligations and exposes underage individuals to gambling, despite the Commodity Futures Trading Commission (CFTC) previously asserting jurisdiction over such platforms.
New York's Attorney General and Governor filed a lawsuit against Polymarket, seeking to stop its operations in the state, alleging it runs an unlicensed gambling business. This action is part of New York's broader effort to regulate prediction markets as gambling, with similar lawsuits against other platforms and ongoing legal disputes with federal regulators.