New York Sues Polymarket As Prediction Market Crackdown Expands Two Months After Kalshi Case

The state says Polymarket has not obtained a license from the New York State Gaming Commission and therefore does not operate under the same regulatory requirements imposed on other gambling institutions. (Credit: Unsplash)

The state of New York sued Polymarket U.S. on Thursday, accusing the company of operating an illegal gambling platform without a state license. The move came less than two months after launching a similar legal challenge against rival Kalshi.

The lawsuit, announced by New York Attorney General Letitia James and Governor Kathy Hochul, marks the latest escalation in a widening battle over whether prediction markets should be regulated as federally supervised financial exchanges or as gambling operations subject to state laws.