# 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.
- Title: New York sues Polymarket over illegal gambling · Futurism
- Summary: New York's attorney general is taking aim at prediction market platforms, accusing them of running unlicensed gambling operations that put young people at…
- Keywords: polymarket, new york, letitia james, prediction markets, illegal gambling lawsuit, kalshi, kathy hochul, cftc, gambling regulation, young people gambling, financial services, trump administration
- Source: Futurism — https://futurism.com/future-society/new-york-sues-polymarket-illegal-gambling
- Author: Victor Tangermann
- Published: 2026-09-24T15:25:02+00:00
- Read time: 1 min
- Topics: polymarket, new york, letitia james, prediction markets, illegal gambling lawsuit, kalshi, kathy hochul, cftc, gambling regulation, young people gambling, financial services, trump administration
## 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.
## Key takeaway

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.