New York sues Polymarket over alleged illegal gambling

New York Attorney General Letitia James is suing Polymarket over alleged violations of state gambling laws involving sporting-event contracts. New York state officials filed the lawsuit on Thursday. The filing cited sporting-event contracts on Polymarket's mobile app, which launched in December 2025. The filing also cited Polymarket's advertising practices aimed at New Yorkers. State officials could seek to block Polymarket for New York residents. The filing said Polymarket seeks to avoid New York's legal and financial consequences for gambling regulation by offering wagering under the label of event contracts on a prediction market. The case follows a similar lawsuit against Kalshi in July. It also follows litigation against prediction market platforms run by Coinbase and Gemini in April. The case adds to a dispute between state authorities and federal agencies over who has authority to regulate prediction markets. US Commodity Futures Trading Commission Chair Michael Selig has claimed that the federal agency has exclusive jurisdiction over the companies. Earlier this month, New Jersey officials petitioned the US Supreme Court to hear arguments in its case against Kalshi. The court has not announced whether it will hear the matter.