New York sues Polymarket over alleged illegal gambling business

New York Attorney General Letitia James filed suit against prediction markets operator Polymarket, accusing the company of running an illegal gambling business by offering event contracts tied to sporting events and marketing those products to New Yorkers. The complaint specifically references Polymarket’s mobile app, which the filing says launched in December 2025 and included sporting-event contracts available to state residents.

State officials argue that Polymarket is presenting what amounts to wagering as ‘‘event contracts’’ on a ‘‘prediction market’’ in an attempt to evade New York’s regulatory framework for gambling. The suit asks the court for remedies that could include barring the platform from offering its services to people in New York.

The action follows a string of state challenges to prediction markets this year. New York’s suit comes after a July lawsuit against Kalshi and litigation in April targeting prediction-market products offered by Coinbase and Gemini. Those cases, and the New York filing, reflect growing pressure from state authorities on platforms that allow users to bet on the outcomes of real-world events.

The legal dispute also highlights a federal-state jurisdictional conflict. CFTC Chair Michael Selig has asserted the agency has "exclusive jurisdiction" over companies operating prediction markets, while state prosecutors have continued to pursue enforcement under their gambling laws. Separately, New Jersey recently asked the U.S. Supreme Court to consider its case against Kalshi, a petition that could help determine whether federal or state regulators have primary oversight; the Court has not yet decided whether to take the case.