New York has initiated a lawsuit against Polymarket, a platform for prediction markets, alleging that it operates an illegal gambling enterprise within the state. Attorney General Letitia James filed the lawsuit on Thursday, claiming that since December 2025, Polymarket has been permitting users to place bets on sporting events without the necessary gaming license required in New York.
James emphasized the purpose of state gambling laws, stating, "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 also indicates that Polymarket has been actively advertising its sports betting services to New York residents since its inception in 2025, while also allegedly accepting bets from individuals under the age of 21.
In addition to seeking to halt Polymarket's unauthorized operations in New York, the suit requests a penalty that would amount to three times the benefits gained from the illegal activities, along with fines ranging from one-half to three times the illegally obtained profits.
Governor Kathy Hochul commented, "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."
