New York accuses Polymarket of flouting gambling laws

New York Attorney General Letitia James sued Polymarket, a cryptocurrency prediction market valued at more than $20 billion, alleging it operates as an unlicensed gambling business in a state where gambling is illegal outside specific exceptions. James says the platform, whose age minimum of 18 sits below New York's legal gambling age of 21, deprives the state of tax revenue meant to fund schools, youth sports and gambling addiction programs.

The suit cites contracts allowing bets on New York's gubernatorial race and reality show eliminations as examples of unlawful offerings, and points to research linking pathological gambling to mental health and substance abuse disorders. Polymarket's chief legal officer called the suit a copy of the state's earlier case against competitor Kalshi and a ‘media hit,' saying the company would fight it while remaining open to talks. The federal Commodity Futures Trading Commission, chaired by a Trump appointee, has separately sued states attempting to regulate these platforms, claiming exclusive federal oversight; Donald Trump Jr. is a major Polymarket investor and advisory board member.

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