New York Sues Polymarket In State Court, Alleging Unlicensed Gambling Operation
On Thursday, September 24, 2026, New York officials filed a civil lawsuit in state court seeking to block the prediction market Polymarket from operating in the state.[1]
The suit asks the court to impose fines and order restitution for users, and it argues Polymarket is an "unlicensed gambling operation" because it did not obtain a New York gaming license.[1] Gov. Kathy Hochul said Polymarket has "put New Yorkers at risk, especially those underage who are most vulnerable to problem gaming." PBS
Polymarket's chief legal officer, Neal Kumar, said the company will "fight for our users" and noted Polymarket was founded in New York City and now employs more than 350 people there.[1] The Wall Street Journal said the filing is the latest move in an escalating crackdown by state officials on prediction markets and other betting apps.[2]
New York previously sued the prediction market Kalshi and took action against Coinbase and Gemini on similar unlicensed-wagering theories, a pattern state officials cite in framing the Polymarket case.[1] The Commodity Futures Trading Commission has pushed back against state regulation of prediction markets, setting up a legal and regulatory clash over who can police these platforms.[1]
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📌 Key Facts
- On Thursday, September 24, 2026, New York officials filed a civil lawsuit in state court seeking to block Polymarket from operating in the state, impose fines, and obtain restitution for users.
- The suit argues that Polymarket is an “unlicensed gambling operation” because it did not obtain a New York gaming license, and situates the case within a broader state push against betting apps.
- Gov. Kathy Hochul said Polymarket has “put New Yorkers at risk, especially those underage who are most vulnerable to problem gaming,” framing the action in consumer-protection terms.
- Neal Kumar, Polymarket’s chief legal officer, responded that the company will “fight for our users” and noted Polymarket was founded in New York City and now employs more than 350 people there.
- The report notes New York has previously sued Kalshi, Coinbase and Gemini on similar unlicensed-wagering theories, and that the Commodity Futures Trading Commission has opposed state regulation of prediction markets.
📰 Source Timeline (2)
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- On Thursday, September 24, 2026, New York officials filed a civil lawsuit in state court seeking to block Polymarket from operating in the state, impose fines, and obtain restitution for users.
- The suit explicitly argues that Polymarket is an unlicensed gambling operation because it did not obtain a New York gaming license, and it situates the case within a broader state push against betting apps.
- Gov. Kathy Hochul said Polymarket has "put New Yorkers at risk, especially those underage who are most vulnerable to problem gaming," framing the case in consumer-protection terms.
- Polymarket chief legal officer Neal Kumar responded that the company will "fight for our users" and emphasized that Polymarket was founded in New York City and now employs more than 350 people there.
- The article notes that New York has previously sued Kalshi, Coinbase and Gemini on similar unlicensed-wagering theories, and that the Commodity Futures Trading Commission has opposed state regulation of prediction markets.