INDIA - 2026/09/03: In this photo illustration, a Polymarket logo is seen displayed on a smartphone and in the background. (Photo Illustration by Avishek Das/SOPA Images/LightRocket via Getty Images)
NEW YORK - New York is suing Polymarket, alleging the prediction market platform is effectively an illegal gambling operation, after an investigation by the State Attorney General's Office.
What we know:
Gov. Kathy Hochul and Attorney General Letitia James announced the lawsuit against Polymarket on Thursday, accusing the company of being an "illegal, unlicensed gambling operation that exposes New Yorkers — including those under the legal gambling age of 21 — to serious personal and financial risk."
NEW YORK, NEW YORK - DECEMBER 15: New York Attorney General Letitia James stands silently during a press conference at the office of the Attorney General on December 15, 2025 in New York City. James announced that she has filed a lawsuit against Unit …
The lawsuit accuses Polymarket of "sidestepping its obligation to pay taxes like licensed casinos and mobile sports gambling platforms do." It seeks to force the company to obtain a license from the New York State Gambling Commission, and pay fines and restitution to users.
Polymarket's website states it allows users to "trade on the outcomes of sports games, elections, and world events."
Governor Kathy Hochul speaks during a press announcement to unveil the path to unpausing congestion pricing. The plan will launch with a reduced base fare of $9, down from the original plan of $15, and the start date is set for January 5, 2025. Conge …
The suit claims prediction markets meet the legal definition of gambling because "outcomes of the events on which its users are betting are uncertain and outside the control of the bettor or hinge on a game of chance."
What they're saying:
"Our gambling laws exist to protect New Yorkers, prevent the potential harms of problem gambling, and ensure funding for educational and public benefit programs. By skirting New York’s laws, Polymarket is targeting the most vulnerable and depriving New York families of critical services and support. My office will never hesitate to take action to defend our laws and keep New Yorkers safe," James said in a statement announcing the lawsuit.
"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. Nobody is above the law in our state, and working with Attorney General James, we are fighting to protect New Yorkers and put this illegal operation to an end," Hochul said.
The other side:
In a statement to FOX 5 NY, Polymarket's chief legal officer, Neal Kumar, called the New York AG's decision to file the lawsuit "disappointing."
"Polymarket was founded in a tiny NYC apartment and now has more than 350 employees here, embodying why people and businesses come here to make it. We believe in New York and we're staying here. While the AG’s decision to copy/paste a recycled lawsuit is disappointing, we’ll fight for our users," Kumar said. "We didn’t run to preemptively sue the state — we chose to engage with them directly on the substance and address their concerns. They preferred the media hit. Any time the AG’s office wants to swing by, our door is open for a conversation about how we protect consumers and offer fair, transparent and legal markets."
New York filed a similar lawsuit against Kalshi earlier this year.
NY suing Kalshi for running alleged 'illegal gambling operation'
The state of New York is suing prediction market platform Kalshi for "running an illegal gambling operation."
The Source: This article was written with information from New York Gov. Kathy Hochul's Office, NY Attorney General Letitia James, and Polymarket.