New York State Sue Polymarket for Running Illegal Gambling Operation
5 hours ago
- New York Governor and AG sue Polymarket for operating an unlicensed gambling business through its prediction market platform.
- The platform allowed users to bet on sports and other events, exposing users including those under 21 to financial and personal risks.
- The lawsuit seeks to stop Polymarket's operations, require forfeiture of illegal gains, pay fines triple the illegal earnings, and provide restitution to harmed users.
- Polymarket violated state law by not obtaining a license from the New York State Gaming Commission and avoiding taxes that fund public services.
- The prediction markets qualify as gambling because outcomes are uncertain, outside bettors' control, or based on chance.
- Underage users aged 18-20 gained access despite New York requiring gamblers to be 21 or older, causing potential mental and financial harm.
- This action is part of broader enforcement efforts, including previous lawsuits against Kalshi, Coinbase, Gemini, and Valve, and an executive order on insider trading.
- Officials urge New Yorkers to only use registered gambling platforms and report misconduct or fraud to the Attorney General's Office.