New York sues Polymarket over alleged illegal gambling business
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
New York Attorney General Letitia James has filed a lawsuit against prediction markets platform Polymarket, alleging that its contracts related to sporting events violate New York state gambling laws. The suit targets Polymarket’s mobile app launched in December 2025 and its advertising practices directed at New York residents. This action follows similar lawsuits against Kalshi, Coinbase, and Gemini for operating prediction markets platforms.
Why it matters
The lawsuit highlights ongoing regulatory conflicts between state authorities and federal agencies over jurisdiction and regulation of prediction markets in the United States. The case could influence legal interpretations of whether prediction markets constitute illegal gambling under state law versus falling under federal regulatory authority.
Key context
Previous lawsuits targeting Kalshi, Coinbase, and Gemini show a pattern of US states challenging prediction markets providers. The Commodity Futures Trading Commission (CFTC) asserts exclusive federal jurisdiction over these platforms, conflicting with state lawsuits. New Jersey has petitioned the US Supreme Court to resolve regulatory authority in this space, but no ruling has yet been made.
Key numbers and entities
Entities involved include New York Attorney General Letitia James, Polymarket, Kalshi, Coinbase, Gemini, and the US Commodity Futures Trading Commission chaired by Michael Selig. The lawsuit references Polymarket’s mobile app release date of December 2025.
What remains unclear
Details about the specific contracts Polymarket offered that allegedly violate gambling laws are not provided. The ultimate legal outcome and how courts will resolve state versus federal regulatory jurisdiction over prediction markets remain uncertain.