GoKawiilNew York AG sues Polymarket, seeking court order to halt operations in state
New York's attorney general and governor announced a lawsuit against Polymarket, accusing it of running an unlicensed gambling operation disguised as a prediction market. The state claims Polymarket allows users as young as 18 to bet, violating New York's rule requiring bettors to be at least 21, and is avoiding taxes that licensed gambling operators must pay. The state is asking a court to shut down Polymarket's operations within New York.
GoKawiil's interpretation of the reporting above, not reported fact.
The lawsuit deepens a jurisdictional clash between states, which regulate gambling, and the federal CFTC, which has claimed exclusive oversight of prediction markets and previously intervened to block New York's similar action against Kalshi. The outcome could determine whether prediction-market platforms nationwide must comply with state gambling laws or can operate under lighter federal oversight, with major implications for their business models and expansion plans.
- New York attorney general Letitia James and Governor Hochul are suing Polymarket for allegedly operating illegal gambling.
- The suit follows a similar case against rival Kalshi, which the CFTC has defended as being under federal, not state, jurisdiction.
- New York claims Polymarket lets underage (18-20) users bet, violating the state's 21-plus rule for mobile sports gambling.
Source: arstechnica.com, 2026-09-24
Published there as: “New York defies Trump admin, asks court to shut down Polymarket gambling”
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