NEW YORK (BLOOMBERG) -- New York announced Thursday it was suing Polymarket US for allegedly running an illegal gambling operation, escalating the legal fight against prediction markets in the state.
According to a press release, the lawsuit by Attorney General Letitia James’ office will seek a court order blocking Polymarket from operating as an unlicensed gambling business and requiring the company to pay fines, forfeit all illegal gains and pay restitution to users.
“By running an unlicensed gambling operation, Polymarket has done more than just knowingly violate state law, they have put New Yorkers at risk, especially those underage who are most vulnerable to problem gaming,” Governor Kathy Hochul said in a statement.
A representative for Polymarket didn’t immediately respond to a request for comment. Polymarket US is regulated by the US Commodity Futures Trading Commission and is much smaller than its international arm.
New York previously filed suit at Polymarket’s main competitor, Kalshi.
It is the latest legal clash for the industry, where users can bet on just about anything. The CFTC views the platforms as derivatives exchanges and say they have exclusive jurisdiction over the platforms.
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