New York state, one of the largest markets for gambling in the U.S., escalated its fight against prediction markets Thursday by suing Polymarket’s domestic arm, alleging that the bet-on-nearly-everything site was illegally running a gambling operation.
The state, where Polymarket and its chief rival—Kalshi—are based, has aggressively sought to rein in the rapidly growing industry. Attorney General Letitia James has brought suits against competitors with similar claims, and New York City Council Speaker Julie Menin has raised a possible investigation into the companies’ marketing practices.
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