New York is taking legal action against Polymarket, a prediction market platform, for allegedly operating an illegal gambling business within the state. Attorney General Letitia James announced the lawsuit on Thursday, accusing Polymarket of operating without the necessary gaming license since December 2025, permitting users to place bets on sports events unlawfully.
Attorney General James stated, "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."
The lawsuit claims that since its inception in 2025, Polymarket has actively promoted sports betting to New Yorkers and has accepted wagers from individuals under the age of 21. The legal action seeks a court order to prohibit Polymarket from conducting any gambling operations in New York until it receives proper authorization.
Additionally, the lawsuit requests penalties amounting to three times the benefits derived from these illegal activities, as well as damages that range from one-half to three times the amount gained unlawfully.
Governor Kathy Hochul expressed her commitment to protecting New Yorkers, stating, "I will always stand up for New Yorkers when bad corporate actors prey on consumers and threaten tax dollars that fund schools and critical public services. 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.
