New York says Polymarket operates like a game of chance and seeks to block the platform in the state.
New York Attorney General Letitia James sued Polymarket US, alleging its prediction markets constitute unlicensed gambling and seeking to block the platform from operating in the state.
What’s the scoop?
-
New York calls it gambling: In his lawsuit against Polymarket USNew York argues that Polymarket’s event contracts meet the state’s definition of gambling (users place money on uncertain outcomes beyond their control) and that Polymarket offers these markets even though it is not licensed by the New York State Gaming Commission.
-
Betting and taxes on minors: The state also argues that Polymarket allows 18-20 year olds to trade in sports markets, even though New York requires mobile sports bettors to be 21, while avoiding taxes imposed on licensed sportsbooks.
-
What New York wants: The state is asking the court to stop Polymarket from operating without a state gaming license and to order disgorgement, disgorgement and penalties, including up to three times the winnings New York claims came from illegal activities and $100,000 for each unauthorized offer or attempted offer of sports betting.
-
Another front in the fight against the prediction market: Polymarket US operates through QCX, a CFTC Designated Contract Marketframing the case as part of a broader fight over whether federally regulated prediction markets must also comply with state gambling laws. New York has already filed a similar suit against Kalshi, while the CFTC continues to argue that prediction markets fall under federal jurisdiction.
About the Author
