State of New York sues Polymarket

New York is suing prediction market platform Polymarket for running illegal gambling operation in the state. On Thursday New York Attorney General Letitia Jame filed a lawsuit. The lawsuit charges Polymarket with running a gambling operation illegally in New York since December 2025, allowing users to place wagers on sporting events without a proper gaming license provided in New York. Attorney General James said: 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’s laws, Polymarket is targeting the most vulnerable and depriving New York families of critical services and support. My office will never hesitate to take action to defend our laws and keep New Yorkers safe. The lawsuit also alleges that Polymarket has persistently advertised sports betting to New York residents since its launch in 2025, and accepted bets from users under the age of 21. The lawsuit asks the court for a judgment that would restrict Polymarket from executing gambling operations in New York without authorization. Besides, it asks for a penalty that should be equal to thrice the benefits from the illegal activities and between one-half and three times the amount gained illegally. New York Governor Kathy Hochul said: I 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. By 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. Nobody 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.