NY sues Polymarket, calling it an unlicensed gambling operation
Summary
New York filed a lawsuit against prediction market Polymarket, arguing the platform operates as an unlicensed gambling operation. The state seeks fines and restitution to users, claiming Polymarket failed to obtain a gaming license. This follows similar suits against Kalshi, Coinbase, and Gemini. Governor Kathy Hochul said the platform puts New Yorkers at risk, especially underage users vulnerable to problem gaming. Polymarket's Chief Legal Officer Neal Kumar vowed to fight for users and affirmed the company's commitment to New York, noting it was founded in a NYC apartment and now employs over 350 people there. Prediction markets argue they are federally regulated by the U.S. Commodity Futures Trading Commission and that consumers trade against each other similarly to stock markets, paying only a trading fee. The CFTC, which has opposed state regulation of such platforms, did not immediately comment.
(Source:Times Of Wayne County)