New York sues Polymarket, seeking to block it from operating in the state
New York sues Polymarket over gambling claims
New York has sued Polymarket, accusing the prediction market platform of running an illegal gambling operation. The state is asking a court to block the company from operating in New York.
A prediction market is a platform where users trade on the outcome of future events. Polymarket is one of the largest such platforms.
New York Attorney General Letitia James and Governor Kathy Hochul announced the lawsuit on Thursday, September 24, 2026. They accused Polymarket of "skirting" the state's laws.
Key points from the lawsuit
- New York filed the lawsuit on Thursday and wants Polymarket blocked from operating in the state.
- Attorney General Letitia James and Governor Kathy Hochul both accused Polymarket of avoiding New York law.
- The state says Polymarket's contracts meet New York's definition of gambling and need a license from the New York State Gaming Commission.
- New York also says the company avoided taxes tied to regulated gambling operations.
- The state wants Polymarket to permanently stop doing business, including advertising, in New York until it registers, and says it should pay $100,000 among other fines.
- Polymarket's chief legal officer, Neal Kumar, said the company is staying in New York.
What New York officials said
James said Polymarket was targeting vulnerable people and taking support away from New York families. "My office will never hesitate to take action to defend our laws and keep New Yorkers safe," she said in a statement.
Hochul said the platform puts young New Yorkers at risk. "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," she said.
The attorney general's office said tax revenue from gambling regulation pays for public schools, sports programs for underserved youth, and problem gambling education and treatment.
Polymarket says it is staying put
Polymarket Chief Legal Officer Neal Kumar said the company has been working with New York officials to address their concerns. He said the company was founded in a small New York City apartment and now has more than 350 employees in the state.
"We believe in New York and we're staying here," Kumar said.
Part of a wider fight over prediction markets
The lawsuit is New York's latest move to rein in prediction markets, according to the report. In July, the state sued Kalshi on similar allegations. Massachusetts and Rhode Island have also taken legal action against Kalshi and Polymarket.
Those cases are part of a broader dispute over whether states or the federal government should mainly regulate prediction markets.
What is confirmed
New York filed the lawsuit on Thursday, September 24, 2026. James and Hochul made public statements accusing Polymarket of avoiding state law. The state is seeking a court order to stop the company from doing business in New York until it registers, plus $100,000 among other fines.
Polymarket's chief legal officer confirmed the company intends to stay in New York and said it has been working with officials.
What is still unclear
The source material does not say how the court will rule or when it might act. It also does not give the total amount of unpaid taxes the state claims, the full list of fines sought beyond the $100,000 figure, or whether Polymarket has filed a formal response in court.
Why this matters
Prediction markets let people bet on event outcomes, and regulators disagree about who should oversee them. New York's case is one of several state actions against such platforms, and the outcome could affect where Polymarket and similar services are allowed to operate. The state also argues that unlicensed gambling costs it tax money that normally funds schools and gambling treatment programs.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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