New York Attorney General Letitia James and Gov. Kathy Hochul announced a lawsuit against Polymarket US, alleging the prediction-market platform is operating an unlicensed gambling business in New York.
The lawsuit seeks to stop Polymarket from operating as an unlicensed gambling business in the state and requires the company to pay fines, forfeit alleged illegal gains and provide restitution to users.
Polymarket launched in the United States in December 2025, offering users the ability to bet money on the outcomes of sporting events and other events through its prediction-market platform.
“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,” said Gov. Kathy Hochul. “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.”
The lawsuit alleges that the markets meet New York's legal definition of gambling because the outcomes are uncertain and outside the bettor's control or depend on chance. New York says Polymarket has not obtained a license from the New York State Gaming Commission.
The state also alleges that Polymarket's prediction markets are available to users ages 18 to 20, although New York law requires people to be at least 21 to participate in mobile sports betting. The lawsuit argues that unlicensed gambling operations avoid regulatory requirements and taxes that apply to licensed gambling operators.
The case adds to New York's broader efforts to enforce its gambling laws as prediction-market platforms expand. New York sued Kalshi in July, alleging that the company's prediction markets constitute illegal gambling under state law.
In the Polymarket lawsuit, James is asking the court to order the company to forfeit alleged illegal gains, provide restitution to consumers who were harmed and pay penalties equal to three times the gains it allegedly made through the conduct at issue. The case will proceed in court, where Polymarket can contest New York's allegations.
