New York sues Polymarket over alleged unlicensed gambling

New York Attorney General Letitia James sued Polymarket in state court on Thursday, alleging the prediction-market platform operated an unlicensed gambling business and asking a judge to block it from operating in the state without a license. The lawsuit also seeks fines and restitution for users, according to accounts of the filing. The allegations have not been tested in court. New York argues that Polymarket’s event contracts amount to gambling because users stake money on uncertain outcomes. The state’s filing also alleges that people aged 18 to 20 could use the platform, despite New York’s minimum age of 21 for mobile sports betting. The supplied accounts do not establish whether underage users participated. Polymarket Chief Legal Officer Neal Kumar said the company would fight the lawsuit and wanted to discuss its consumer protections with state officials. He also said Polymarket had more than 350 employees in New York and intended to stay there. The company disputes New York’s characterization of its business, maintaining that prediction markets are subject to federal rather than state oversight.