New York sues Polymarket over alleged illegal gambling business

The action filed by state lawmakers followed a similar lawsuit against prediction markets company Kalshi in July that alleged the platform was running an illegal gambling operation.

New York Attorney General Letitia James is suing prediction markets platform Polymarket for offering contracts related to sporting events.

On Thursday, New York state officials filed a lawsuit against Polymarket, alleging that the company’s prediction market event contracts violated state gambling laws. The lawsuit followed a similar action against Kalshi in July and litigation against prediction market platforms run by Coinbase and Gemini in April. 

Thursday’s filing cited Polymarket’s sporting event contracts on its mobile app launched in December 2025, including its advertising practices to New Yorkers. According to the filing, state officials could also seek to block the platform to residents.

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