New York sued Polymarket today, alleging that it runs an \u201cillegal gambling operation\u201d through its prediction market.<\/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 Governor Kathy Hochul said in a press release<\/a> announcing the lawsuit.<\/p>\n Polymarket is \u201csidestepping its obligation to pay taxes like licensed casinos and mobile sports gambling platforms do,\u201d New York said. \u201cThis tax revenue from gambling regulation funds public schools, sports programs for underserved youth, and problem gambling education and treatment.\u201d<\/p>\n Polymarket is \u201cavailable to users between the ages of 18\u201320, even though New York law requires a person to be at least 21 years old to participate in mobile sports betting,\u201d exposing young people to gambling\u2019s \u201cdamaging effects on their mental and financial well-being,\u201d New York said.<\/p>\n New York previously sued Kalshi, Polymarket\u2019s chief rival. The Trump administration is on the side of the prediction markets, with the Commodity Futures Trading Commission (CFTC) asserting exclusive jurisdiction over the platforms. In August, the CFTC declared<\/a> a \u201cmarket emergency\u201d in New York in an attempt to stop the state from applying its gambling laws to Kalshi.<\/p>\n Gambling with a different name<\/p>\n Polymarket and its rival Kalshi offer sports bets in the form of \u201cevent contracts\u201d or \u201cswaps,\u201d which state governments and some courts say are just gambling with a different name.<\/p>\n \u201cOur gambling laws exist to protect New Yorkers, prevent the potential harms of problem gambling, and ensure funding for educational and public benefit programs,\u201d New York Attorney General Letitia James said. \u201cBy skirting New York\u2019s laws, Polymarket is targeting the most vulnerable and depriving New York families of critical services and support.\u201d<\/p>\n The New York press release said the state government is \u201cseeking a court order stopping Polymarket from operating as an unlicensed gambling business and requiring the company to pay fines, forfeit all illegal gains and pay restitution to users.\u201d The lawsuit<\/a> was filed today in a New York County court.<\/p>\n","protected":false},"excerpt":{"rendered":"New York sued Polymarket today, alleging that it runs an \u201cillegal gambling operation\u201d through its prediction market. \u201cBy…\n","protected":false},"author":2,"featured_media":356023,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[9,11,10],"class_list":["post-356022","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york","tag-new-york","tag-new-york-headlines","tag-new-york-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/356022","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=356022"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/356022\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/356023"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=356022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=356022"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=356022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}