New York State in the United States has filed a lawsuit against the prediction markets platform Polymarket U.S., alleging that it operates as an illegal gambling platform without a license from the New York State Gaming Commission. CNBC reports.
The state’s claims
State Attorney General Letitia James said that Polymarket violates New York gambling law. According to her, by circumventing state laws, the platform “targets the most vulnerable” and deprives New York families of funds for essential services and support.
The lawsuit also alleges that Polymarket allows users aged 18 and older to participate. Authorities cited a report by the New York State Office of Addiction Services and Supports, according to which people aged 18 to 24 are in a high-risk group for developing gambling addiction.
New York Governor Kathy Hochul said that the operation of an unlicensed gambling operator, according to the state’s assessment, creates risks for New York residents, including minors vulnerable to problem gambling.
Demands and the company’s position
The state is asking the court to impose penalties on Polymarket, including an amount equal to three times any revenue generated by the platform. The lawsuit also seeks $100,000 for each attempt or offer of sports betting or mobile sports betting in New York.
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In addition, authorities are asking Polymarket U.S. to provide information on all transactions concluded on the platform, user losses, and the service’s revenue. The U.S. version of Polymarket began operating in December 2025 and is regulated by the U.S. Commodity Futures Trading Commission, which oversees prediction market platforms.
The company also operates an offshore prediction platform founded in 2020. CNBC notes that the CFTC did not respond to a request for comment. The outlet also reports that the CFTC has filed lawsuits against several states, insisting on its right to regulate such markets.
Polymarket Chief Legal Officer Neal Kumar said that the company has more than 350 employees in New York and will remain in the city. He called the attorney general’s decision disappointing and said that the platform would fight for its users.
The lawsuit against Polymarket was filed nearly two months after New York State went to court against the platform’s competitor, Kalshi.
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