New York Attorney General Letitia James has initiated legal action against Polymarket, a prediction markets platform, alleging it is running an illegal gambling operation. The lawsuit was filed on Thursday, targeting the company's event contracts related to sporting events.
This lawsuit follows a similar case against Kalshi, filed in July, and earlier litigation involving prediction market platforms operated by Coinbase and Gemini. State officials argue that Polymarket's offerings violate New York's stringent gambling laws.
The complaint highlights Polymarket's mobile app, launched in December 2025, and its advertising practices aimed at New Yorkers. The state may seek to block access to the platform for residents as part of the legal proceedings.
The filing asserts that Polymarket is attempting to circumvent New York's gambling regulations by marketing its services as "event contracts" within a "prediction market." This case underscores ongoing tensions between state and federal authorities regarding the regulation of prediction markets.
Additionally, New Jersey officials have petitioned the US Supreme Court to clarify regulatory oversight in the prediction markets industry, a move that could have significant implications for platforms like Polymarket and Kalshi.