WASHINGTON (TNND) \u2014 New York on Thursday filed a lawsuit against Polymarket for allegedly running an illegal gambling operation.<\/p>\n
The lawsuit comes after New York sued prediction market platforms Kalshi<\/a>, Coinbase, and Gemini earlier this year.<\/p>\n \u201cI will always stand up for New Yorkers when bad corporate actors prey on consumers and threaten tax dollars that fund schools and critical public services,\u201d New York Gov. Kathy Hochul (D) said in a statement<\/a>.<\/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 she continued.<\/p>\n According to the lawsuit, Polymarket has allegedly been operating a gambling business without obtaining a license from New York’s gaming commission or paying the associated taxes, The Hill reported<\/a>. The state also argues that the prediction market platform violates laws barring gambling for users under 21 years old.<\/p>\n Attorney General Letitia James (D) said in a statement, “Our gambling laws exist to protect New Yorkers, prevent the potential harms of problem gambling, and ensure funding for educational and public benefit programs. By skirting New York\u2019s laws, Polymarket is targeting the most vulnerable and depriving New York families of critical services and support.”<\/p>\n The lawsuit seeks a court order stopping Polymarket from operating as an unlicensed gambling business and requiring the company to forfeit all illegal gains, distribute restitution to harmed consumers, and pay fines equal to three times its illegal gains.<\/p>\n \u201cWe believe in New York and we\u2019re staying here,\u201d Polymarket chief legal officer Neal Kumar said 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 he 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.\u201d<\/p>\n