New York Attorney General Letitia James has sued Polymarket U.S., accusing it of running an unlicensed gambling business in violation of state laws. The lawsuit claims Polymarket lacks a license from the New York State Gaming Commission and allows users aged 18 and older to participate, raising state concerns about gambling risks for younger adults.
The lawsuit comes about two months after New York filed a similar suit against another prediction-market platform, Kalshi. The state seeks penalties including triple the amount of Polymarket's alleged profits, plus $100,000 for each instance of sports wagering or mobile sports wagering offered in New York. It also demands detailed records of trades, user losses, and the company's earnings.
Polymarket U.S., which launched in December 2025, is regulated by the federal Commodity Futures Trading Commission (CFTC). This case highlights the dispute over whether prediction markets fall under federal commodity regulation or state gambling laws. Together with the Kalshi lawsuit, it reflects growing regulatory scrutiny and the challenge of applying existing gambling laws to new betting platforms.
