New York sues Polymarket for allegedly running illegal gambling operation
New York sues Polymarket for operating unlicensed gambling, seeking to halt operations and recover illegal gains.Summary
New York filed a lawsuit against Polymarket for allegedly running an illegal gambling operation without a license from the state's gaming commission or paying associated taxes. Attorney General Letitia James and Governor Kathy Hochul stated that the prediction market platform endangers consumers, particularly those under 21, and deprives the state of tax revenue funding schools and public services. The lawsuit seeks to halt Polymarket's unlicensed gambling activities, require forfeiture of illegal gains, restitution to harmed consumers, and fines equal to three times illegal gains. This follows similar earlier suits against Kalshi, Coinbase, and Gemini. Polymarket's chief legal officer Neal Kumar dismissed the lawsuit as a "recycled" copy of previous actions and vowed to defend users. The broader legal battle involves conflicting appellate court decisions—where the 3rd Circuit blocked New Jersey's enforcement against Kalshi while the 9th Circuit ruled Nevada could regulate prediction markets like gambling. New Jersey has asked the Supreme Court to resolve the dispute, amid the federal government's regulatory stance through the Commodity Futures Trading Commission under the Trump administration, which has sided with the platforms.
(Source：Baltimore News)