From Futurism · Victor Tangermann · · 1m 30s
New York sues Polymarket over illegal gambling
New York's attorney general is taking aim at prediction market platforms, accusing them of running unlicensed gambling operations that put young people at risk.
In brief
New York's attorney general is taking aim at prediction market platforms, accusing them of running unlicensed gambling operations that put young people at risk. States are increasingly cracking down on prediction markets as federal regulators stay hands-off, leaving companies like Polymarket to fight legal battles on…
New York sues Polymarket
New York's attorney general Letitia James filed a lawsuit Thursday accusing Polymarket of running an unlicensed gambling operation in violation of state law.
State seeks to shut down platform
James' office wants a court order blocking Polymarket from operating as an unlicensed gambling business, plus fines and forfeiture of illegal gains.
Governor warns of youth risk
Governor Kathy Hochul said Polymarket put New Yorkers at risk, especially underage users vulnerable to problem gaming by running an unlicensed gambling operation.
“they have put New Yorkers at risk, especially those underage who are most vulnerable to problem gaming”
Polymarket fights back
Chief legal officer Neal Kumar said the company was founded in New York and has 350 employees there, calling the lawsuit a recycled copy of an earlier case against Kalshi.
“We believe in New York and we're staying here.”
Federal government stays silent
The Trump administration has shown little interest in federal regulation of prediction markets, with the president's family having direct ties to both Kalshi and Polymarket.
States fill the regulatory void
Without federal oversight, states are increasingly taking action against prediction markets as experts warn of a wave of gambling addiction among young people.
In short
States are increasingly cracking down on prediction markets as federal regulators stay hands-off, leaving companies like Polymarket to fight legal battles on multiple fronts.
