New York sues Polymarket over allegations of illegal gambling operations
The lawsuit comes two months after the state filed a similar lawsuit against competitor Kalshi.
New York State has filed a lawsuit against prediction market company Polymarket amid allegations that it violated state laws against illegal gambling.
The suit, filed on Thursday by New York State Attorney General Letitia James, comes two months after the state filed a similar lawsuit against competitor Kalshi. That followed the state suing Coinbase and Gemini for offering users the ability to bet on “sports, entertainment, and elections, in violation of New York laws”, according to a release from the attorney general’s office at the time.
“Our gambling laws exist to protect New Yorkers, prevent the potential harms of problem gambling, and ensure funding for educational and public benefit programs,” James said in a statement announcing the suit.
Prediction markets allow users to wager on so-called event contracts, covering political events, sports, elections and even award shows. Concerns about the role of prediction markets came to a head earlier this year when wagers were made in the hours before the United States and Israel first struck Iran, prompting widespread backlash in Washington.