--- title: "New York Sues Polymarket, Accuses It of Running an “Illegal Gambling” Operation" description: "New York attorney general Letitia James filed a lawsuit against Polymarket, accusing it of violating state laws against illegal gambling." date: "2026-09-24" modified: "2026-09-24" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor.md" url: "https://futurism.com/future-society/new-york-sues-polymarket-illegal-gambling" categories: - "Future Society" --- # New York Sues Polymarket, Accuses It of Running an “Illegal Gambling” Operation ![The Polymarket logo is displayed on a smartphone with stock market percentages in the background]() *Omar Marques/SOPA Images/LightRocket via Getty Images* Just over a month after suing prediction market Kalshi for [running an "illegal gambling" operation](), New York state authorities are now [accusing competitor Polymarket]() of exactly the same thing. On Thursday, the state's attorney general Letitia James filed a lawsuit against Polymarket, accusing it of violating state laws against illegal gambling, as [*Reuters* reports](). James' office will seek a court order to block the company from operating as an unlicensed gambling business, which would require it to pay fines and forfeit any illegal gains. "By running an unlicensed gambling operation, Polymarket has done more than just knowingly violate state law," said New York governor Kathy Hochul in a [statement](), adding that "they have put New Yorkers at risk, especially those underage who are most vulnerable to problem gaming." Polymarket's chief legal council Neal Kumar fired back in a strongly-worded statement. "Polymarket was founded in a tiny NYC apartment and now has more than 350 employees here, embodying why people and businesses come here to make it," he said. "We believe in New York and we're staying here. While the AG’s decision to copy/paste a recycled lawsuit is disappointing, we’ll fight for our users. We didn’t run to preemptively sue the state — we chose to engage with them directly on the substance and address their concerns. They preferred the media hit. Any time the AG’s office wants to swing by, our door is open for a conversation about how we protect consumers and offer fair, transparent and legal markets." The White House has expressed little interest in federal regulations reining in prediction markets. In fact, president Donald Trump's family has [direct ties to both Kalshi and Polymarket](). And without oversight from Washington, DC, an increasing number of states are looking to take action as [experts fear a wave of gambling addiction](), facilitated by a [surge in interest]() for betting on platforms like Kalshi and Polymarket. The Trump administration maintains that the Commodity Futures Trading Commission should be the only group regulating these companies, putting it at odds with those states, per *Reuters*. Earlier this week, news broke that the CFTC is investigating Polymarket after finding that fraudsters [tried to steal at least $10 million]() from the platform. Polymarket continues to argue that it's not a gambling service, even though it [neatly fits into the very definition of gambling](). It has maintained that it's a financial services group, which wouldn't make it subject to gambling laws. But given the latest news, not everyone in US politics is convinced of that argument. **More on prediction markets:** [*Prediction Markets Are Sucking Huge Numbers of Young People Into Gambling*]() ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()