New York sues prediction market Polymarket, calling it an unlicensed gambling operation that puts residents at risk
Summary
New York sued the prediction market platform Polymarket, claiming it operates an unlicensed gambling business and asking a judge to stop it from working in the state. The state wants Polymarket to pay fines and return money to users because it did not get the required gaming license.Key Facts
- New York filed the lawsuit against Polymarket in state court on Thursday.
- The state says Polymarket broke the law by running gambling operations without a license.
- Polymarket allows users to trade contracts based on the chance of future events, similar to betting.
- The platform claims it is regulated federally by the U.S. Commodity Futures Trading Commission (CFTC), not by states.
- New York has sued other platforms like Kalshi, Coinbase, and Gemini for similar reasons.
- Governor Kathy Hochul said unlicensed gambling puts residents, especially minors, at risk.
- Polymarket’s Chief Legal Officer said the company will fight the lawsuit and emphasized its commitment to New York.
- The CFTC has opposed state efforts to regulate these prediction market platforms but did not comment on the lawsuit.
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