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ALBANY, N.Y. - (Gambling911.com) - New York Attorney General Letitia James has announced a lawsuit against the prediction market Polymarket on Thursday, escalating her battle against prediction markets. The suit was filed in the state court in Manhattan.
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James had previous filed suit against Kalshi and two other prediction market operators, Coinbase and Gemini Titan.
All were accused of operating without obtaining required licenses from the New York State Gaming Commission. They were also accused of encouraging problem gambling, particularly among people under age 21, and endangering people's financial, emotional and physical health.
Polymarket launched in the United States in December 2025 as a service that allowed users to bet money on the outcome of sporting events, promising users “sports — followed by markets on everything.”
The prediction market is licensed by the Commodity Futures Trading Commission (CFTC).
“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,” Governor Hochul said. “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.”
Attorney General Letitia James said, “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.”
Polymarket Chief Legal Officer Neal Kumar called the lawsuit a "media hit" against the company, and said it was open to working with the state rather than fighting in the courts.
"We didn't run to preemptively sue the state - we chose to engage with them directly on the substance and address their concerns," Kumar said in a statement. "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."
- Aaron Goldstein, Gambling911.com
