Gambling is illegal in New York, but there are notable exceptions including the state lottery, commercial casinos, tribe- and charity-operated gaming and sports betting. Polymarket, a cryptocurrency-based platform that allows users to bet on sports and other events like election outcomes, TV shows and the weather in major U.S. cities, is restricted in several states along with its primary competitor Kalshi, which faces a New York lawsuit<\/a> filed in July.<\/p>\n Legal gambling is regulated by the New York State Gaming Commission, which has not issued a license to Polymarket or Kalshi \u2014 meaning the companies don\u2019t pay taxes that go toward funding schools, sports programs for vulnerable youth and gambling addiction programs.<\/p>\n \u201cBy skirting New York\u2019s laws, Polymarket is targeting the most vulnerable and depriving New York families of critical services and support,\u201d New York Attorney General Letitia James said in a statement Thursday.<\/p>\n James accuses Polymarket, which is valued at more than $20 billion, of putting New Yorkers, including those under the state\u2019s legal gambling age of 21 \u2014 the platform\u2019s age minimum is 18 \u2014 at personal and financial risk by operating as an unlicensed gambling business. She seeks a court order stopping the operations as well as fines, forfeiture and restitution.<\/p>\n The attorney general pointed to recent National Institutes of Health and American Psychological Association studies linking pathological gambling<\/a> to other mental health disorders, suicidal behaviors<\/a> and substance abuse.<\/p>\n Polymarket is \u201csubverting New York\u2019s express regime by facilitating gambling in New York without required responsible gambling features mandated for licensed sports wagering operations, and without any oversight by the New York State Gaming Commission, exposing New Yorkers to gambling addiction with few, if any, safeguards,\u201d James says in the suit.<\/p>\n She points, in addition to sports betting, to non-sports-related Polymarket offerings for speculation, like the winner of New York\u2019s gubernatorial election and who would be eliminated from the reality TV show \u201cBig Brother” in its 28th season, as examples of unlawful contracts.<\/p>\n Neal Kumar, Polymarket\u2019s chief legal officer, defended the company and referenced James\u2019 previous suit against Kalshi in a statement Thursday.<\/p>\n \u201cWhile the AG\u2019s decision to copy\/paste a recycled lawsuit is disappointing, we\u2019ll fight for our users,\u201d Kumar said, adding the lawsuit was a \u201cmedia hit\u201d and said the company is willing to speak with James\u2019 office directly.<\/p>\n \u201cAny 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 Kumar said.<\/p>\n States including Nevada,\u00a0Massachusetts<\/a>\u00a0and\u00a0Washington<\/a>\u00a0have all won court orders restricting Kalshi\u2019s activity. In New York, a federal judge in July\u00a0shot down Kalshi\u2019s bid to block state regulators<\/a>\u00a0from regulating it.<\/p>\n The Trump administration has worked to thwart state regulatory efforts<\/a>. The U.S. Commodity Futures Trading Commission has claimed exclusive oversight of the platforms and\u00a0sued states looking to rein them in<\/a>.<\/p>\n Michael Selig, the commission\u2019s chairman, said in an April statement that \u201cCongress specifically rejected such a fragmented patchwork of state regulations because it resulted in poorer consumer protection and increased risk of fraud and manipulation.\u201d<\/p>\n President Donald Trump\u2019s son Donald Trump Jr. is a major investor in Polymarket and sits on the company\u2019s advisory board.<\/p>\n If you are having thoughts of suicide, call or text 988, or call the National Suicide Prevention Lifeline at\u00a01-800-273-8255<\/a>\u00a0(TALK). Visit\u00a0SpeakingOfSuicide.com\/resources<\/a>\u00a0for a list of additional resources.<\/p>\n Our weekly newsletter Closing Arguments offers the latest about ongoing
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