By The Epoch Times | Created at 2026-09-24 22:32:11 | Updated at 2026-09-26 01:50:19
1 day ago
The Polymarket logo appears in this illustration taken April 22, 2026. Dado Ruvic/Reuters
New York state filed suit against Polymarket on Sept. 24, alleging the prediction market is running an illegal gambling operation.
The legal action follows similar lawsuits, filed by New York State Attorney General Letitia James earlier this year, against other prediction markets including Kalshi, Coinbase, and Gemini Titan.
James is asking a New York trial court to stop Polymarket from operating in the state, “pay fines, forfeit all illegal gains, and pay restitution to users,” a statement from her office said.
“By running an unlicensed gambling operation, Polymarket has done more than just knowingly violate state law, they have put New Yorkers at risk, especially those underage who are most vulnerable to problem gaming,” Gov. Kathy Hochul said in a statement.
Polymarket launched its U.S.-dedicated platform in December 2025, initially offering sports betting. It has since expanded to allow wagers on just about anything, from the winner of the 2026 Nobel Peace Prize, to who will be named Person of the Year by Time magazine.
The company rakes in more than $1 billion in annual revenue, New York’s lawsuit states.
Polymarket has not given the state its cut of those profits, by “sidestepping its obligation to pay taxes like licensed casinos and mobile sports gambling platforms do,” the attorney general’s statement said.
“This tax revenue from gambling regulation funds public schools, sports programs for underserved youth, and problem gambling education and treatment.”
Polymarket said it was willing to discuss the issue with New York.
“We chose to engage with them directly on the substance and address their concerns,” Polymarket’s Chief Legal Officer Neal Kumar said in a statement. “They preferred the media hit. Any time the (attorney general’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.”
In January, James also filed suit against video game developer Valve, alleging it promotes gambling to children and teenagers. Its most popular games, “Counter-Strike 2,” “Dota 2,” and “Team Fortress 2,” allow kids to use real money to purchase in-game “mystery boxes,” which grant random rewards when opened.
The rewards are purely cosmetic, but they are regarded as collectibles and there is a lucrative real-world market for them.
Valve responded by comparing those in-game mechanics to kids buying packs of baseball cards.
“People enjoy surprises,” the company said in its motion to dismiss the suit. “And while there is an element of randomness in opening a baseball card pack that includes a one-of-a-kind Aaron Judge rookie card, no legislature or court has ever deemed that act illegal gambling.”
Reuters contributed to this report.
