New York has intensified its legal challenge against prediction markets after Attorney General Letitia James sued Polymarket over alleged illegal gambling. The Manhattan filing accuses the platform of offering wagers without approval from the New York State Gaming Commission.
New York Targets Polymarket
The state seeks civil penalties, restitution for customers, and the forfeiture of alleged illegal gains. Additionally, officials object to Polymarket allowing users aged 18 to 20 to access its markets. New York requires bettors to reach 21 for mobile sports betting.
The lawsuit points to sports contracts as evidence of the platform’s activities. One example involved a July 24 baseball contract tied to the Los Angeles Dodgers and New York Mets.
Regulatory Fight Expands
Polymarket rejected the allegations and said it remains willing to discuss consumer protections with state officials. However, the lawsuit adds another dispute to a growing regulatory battle.
James previously sued Kalshi and filed cases involving Coinbase Financial Markets and Gemini Titan. Meanwhile, the Commodity Futures Trading Commission claims federal authority over prediction markets. Consequently, conflicting state and federal positions could shape how these platforms operate nationwide.
Moreover, Polymarket returned to the US market last year after receiving CFTC approval. The latest lawsuit now puts that expansion under renewed legal pressure.
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