New York Sues Polymarket Over Gambling Allegations
New York sued Polymarket for operating an unlicensed gambling business, seeking fines, forfeiture of illegal gains, and consumer restitution.Summary
New York Attorney General Letitia James and Governor Kathy Hochul have filed a lawsuit against Polymarket US, alleging that the prediction-market platform operates an unlicensed gambling business in New York. The lawsuit argues that Polymarket's markets meet New York's legal definition of gambling because outcomes are uncertain and depend on chance, and that the company has not obtained a license from the New York State Gaming Commission. The state also contends that Polymarket's platforms are available to users aged 18 to 20, despite New York law requiring participants in mobile sports betting to be at least 21.
The lawsuit seeks to shut down Polymarket's operations in the state, require the company to pay fines, forfeit alleged illegal gains, and provide restitution to affected consumers, with penalties equal to three times the gains allegedly made through the conduct at issue. Governor Hochul emphasized that unlicensed gambling operations pose risks especially to underage users who are most vulnerable to problem gaming. This case follows a similar lawsuit against Kalshi filed in July, as New York intensifies efforts to enforce its gambling laws amid the expansion of prediction-market platforms. Polymarket can contest New York's allegations in court.
(Source：Bkreader)