New York Attorney General Letitia James and Governor Kathy Hochul announced Thursday that the state was filing a lawsuit against Polymarket for running what the state calls an illegal, unlicensed gambling operation. The state also alleges that Polymarket allows people under the age of 21 to gamble, something expressly forbidden under New York law.<\/p>\n
Gov. Hochul released a statement<\/a> Thursday alleging that Polymarket was a \u201cbad corporate actor\u201d that\u2019s preying on consumers and not paying tax dollars that fund schools and public services.<\/p>\n \u201cBy running an unlicensed gambling operation, Polymarket has done more than just knowingly violate state law, they have put New Yorkers at risk, especially those underage who are most vulnerable to problem gaming,\u201d Gov. Hochul said. \u201cNobody is above the law in our state, and working with Attorney General James, we are fighting to protect New Yorkers and put this illegal operation to an end.\u201d<\/p>\n Platforms like Polymarket insist they don\u2019t allow gambling and prefer the term \u201cprediction market.\u201d But the state says it meets the legal definition of gambling \u201cbecause the outcomes of the events on which its users are betting are uncertain and outside the control of the bettor or hinge on a game of chance.\u201d The lawsuit filed Thursday seeks to stop Polymarket from operating in the state entirely and pay restitution.<\/p>\n New York isn\u2019t the first state to try to go after the prediction markets like Polymarket and Kalshi. Nevada, Minnesota, Kentucky, and a host of others have tried to restrict their operations over allegations of illegal sports betting.<\/p>\n The U.S. Commodity Futures Trading Commission under President Trump has sought to push back against the states and allow the prediction markets to operate as they like. The president\u2019s son Donald Trump Jr. is a paid advisor to both Kalshi and Polymarket. The CFTC has asked the Supreme Court to weigh in on the state lawsuits in a bid to make sure they can continue operating nationally.<\/p>\n Reached for comment over email Thursday, Polymarket tried to position itself as a small upstart company with humble origins.<\/p>\n \u201cPolymarket was founded in a tiny NYC apartment and now has more than 350 employees here, embodying why people and businesses come here to make it. We believe in New York and we\u2019re staying here,\u201d said Polymarket\u2019s chief legal officer Neal Kumar in a statement.<\/p>\n \u201cWhile the AG\u2019s decision to copy\/paste a recycled lawsuit is disappointing, we\u2019ll fight for our users,\u201d Kumar continued. \u201cWe didn\u2019t run to preemptively sue the state \u2014 we chose to engage with them directly on the substance and address their concerns. They preferred the media hit. Any time the AG\u2019s office wants to swing by, our door is open for a conversation about how we protect consumers and offer fair, transparent and legal markets.\u201d<\/p>\n Gambling with insider information has been a point of contention, with some folks making money on things like the war in Iran<\/a> and even what President Trump will say in a given speech. Trump\u2019s teleprompter operator allegedly made $100,000<\/a> betting on the president\u2019s speeches.<\/p>\n