Polymarket sues New York to block state regulation

Polymarket sued New York Attorney General Letitia James and other state officials in Manhattan federal court on Sept. 24, seeking to prevent them from regulating its prediction-market business.

The company filed its case on Thursday evening, after James sued Polymarket earlier that day. The attorney general accused the platform of promoting illegal gambling in violation of New York state law.

The duelling actions place Polymarket directly in New York’s widening effort to apply its gambling laws to prediction-market platforms.

New York has made clear that it intends to continue pursuing enforcement. In a separate statement addressing federal litigation over the state’s gambling-law enforcement, James and Gov. Kathy Hochul said the laws were designed to protect consumers using both prediction markets and casinos, and that platforms violating them would be held accountable.

As we reported on Sept. 14, a separate Manhattan federal case has already put before a judge the question of whether New York may apply its gambling laws to prediction-market products offered by Coinbase and Gemini.