New York sues Polymarket U.S. as ‘illegal gambling business’

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeInvestorNew York sues Polymarket U.S. as ‘illegal gambling business’Polymarket struck back with a suit against the stateAuthor of the article:Megan Howard and Ben WeissThis photograph shows set up screens displaying the logo and home page of U.S. cryptocurrency based prediction market platform Polymarket, in Saint-Mande, east of Paris, on April 29, 2026. Photo by Martin LELIEVRE / AFP via Getty ImagesNew York sued Polymarket U.S. for allegedly running an illegal gambling business, escalating the legal fight against prediction markets in the state.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountHours later, Polymarket struck back with a suit against the state, accusing New York of overstepping its authority to police a federally regulated exchange.The state lawsuit filed Thursday by Attorney General Letitia James’ office seeks a court order blocking Polymarket from operating as an unlicensed gambling business and requiring the company to pay fines, forfeit all illegal gains and pay restitution to users.This advertisement has not loaded yet, but your article continues below.It’s the latest legal clash for the industry, which offers users a platform where they can place wagers on just about anything. The U.S. Commodity Futures Trading Commission views prediction markets as derivatives exchanges exclusively subject to federal jurisdiction, but many states contend their gaming laws apply. The U.S. Supreme Court was recently asked to weigh in on the dispute.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try again“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,” Governor Kathy Hochul said in a statement announcing the suit.New York previously sued Polymarket’s main competitor, Kalshi Inc.Polymarket Chief Legal Officer Neal Kumar on Thursday stressed that the company called New York home and said it tried to engage with state officials to address their concerns.“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,” Kumar said in a statement. “While the AG’s decision to copy/paste a recycled lawsuit is disappointing, we’ll fight for our users.”This advertisement has not loaded yet, but your article continues below.The complaint filed Thursday evening by Polymarket alleges the state has no business bringing an enforcement action because the company’s US operations are overseen by the CFTC.Polymarket said the moves by New York to regulate prediction markets “are part of a spate of state efforts to undermine the CFTC’s exclusive jurisdiction.”“This is an extraordinary assertion of state power squarely foreclosed by federal law,” according to Polymarket’s complaint.James’ office didn’t immediately respond to a request for comment on Polymarket’s suit. The CFTC also didn’t respond to a request for comment.Prediction markets have surged since U.S. President Donald Trump returned to the White House as the CFTC embraces the multibillion-dollar industry, with Chairman Michael Selig suing states attempting to take action against the platforms.With assistance from Lydia Beyoud and J.J. McCorveyThis advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.