New York sues Polymarket over illegal gambling
The state wants to halt the prediction platform’s US operations and recover money for users.
New York’s attorney general has sued Polymarket because, she says, the platform is operating an illegal gambling business without a licence. Polymarket calls its services prediction markets, but New York says users are in fact staking money on the outcome of events.
The case was brought by Attorney General Letitia James and Governor Kathy Hochul. They are asking the court to bar Polymarket from operating in New York without a licence from the state gaming commission.
According to the attorney general, Polymarket launched a US service in December 2025 on which users could stake money on sports matches and other events. The state says that residents aged 18 to 20 also had access, while mobile sports betting in New York has a minimum age of 21.
New York is also seeking fines, the seizure of proceeds it considers illegal and compensation for affected users. The lawsuit also alleges that Polymarket does not pay gambling taxes, as licensed casinos and mobile sports-betting operators do.
The lawsuit is part of a broader conflict over prediction markets. Platforms such as Polymarket and Kalshi present contracts as financial products that users can trade. States such as New York believe that sports contracts and other payouts fall under their gambling laws in practice.
The allegations do not yet constitute a judicial finding. The case must first determine whether the contracts on offer qualify as gambling under New York law and whether the state has the authority to act against a platform that presents itself as a market for events.
One story, several perspectives
What is established
- New York has brought a civil case against Polymarket.
- The state says the platform offers gambling without a state licence.
- Polymarket presents its product as a prediction market.
Left
Arguments Platforms that make money from predictions should provide the same protections as other gambling operators, especially for young people and those with gambling problems.
Values Consumer protection, public health and equal rules.
Consequences Strict licensing requirements could make the market smaller, but in this view they limit financial harm.
Centre
Arguments The legal category needs to be clarified. Some contracts resemble financial instruments, while others resemble bets, and oversight should reflect that.
Values Legal certainty, proportionate regulation and institutional clarity.
Consequences A clear framework could allow innovation without platforms evading rules by calling their product something else.
Right
Arguments Adult users should retain room to take risks and trade information about events. States must not block federal financial markets through gambling rules.
Values Market freedom, freedom of choice and limited government power.
Consequences Overly burdensome state rules could shift activity to other jurisdictions and hamper innovation in financial technology.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The core facts are drawn from the official press release and confirmed by ABC News. The legal characterisations are presented as allegations because the court has not yet ruled.
- confirmed New York has sued Polymarket. — Confirmed by the attorney general’s official press release. source
- confirmed New York wants a ban, fines, the seizure of proceeds and restitution. — These demands are set out in the press release. source
- confirmed According to New York, Polymarket gave users aged 18 to 20 access. — The attorney general cites this as part of her case. source
- confirmed The lawsuit is part of a broader conflict over prediction markets. — The AP has previously described similar proceedings against other platforms. source
Editor's note
The lawsuit and New York’s demands are certain. Whether Polymarket is legally an illegal gambling business has not yet been established; the article consistently attributes that characterisation to the plaintiffs.Sources
- Attorney General James and Governor Hochul Announce Lawsuit Against Polymarket — New York Attorney General
- New York Attorney General Letitia James files suit against Polymarket — ABC News
- New York sues Kalshi, says prediction market is running illegal gambling operation — Associated Press
More on this in Dutch media
- RTL Nieuws — „polymarket new york”
- FD — „polymarket new york”
- Trouw — „polymarket new york”