New York Sues Polymarket

New York State sued Polymarket on Thursday, accusing the prediction-market company of running an illegal gambling business under state law. The state says Polymarket lacks a State Gaming Commission license and cannot offer the betting activity it says the company provides. The case follows earlier New York actions against Kalshi, Coinbase and Gemini, as states and federal regulators fight over who controls prediction markets. Polymarket says federal commodities rules and the Commodity Futures Trading Commission govern its markets, while New York says state gambling law applies. Attorney General Letitia James and Governor Kathy Hochul said Polymarket targets vulnerable New Yorkers and drains public revenue. New York is asking a court to stop Polymarket in the state.