New York State has filed a lawsuit against prediction market company Polymarket amid allegations that it violated state laws against illegal gambling.
asserted
it → file → gambling
The suit, filed on Thursday by New York State Attorney General Letitia James, comes two months after the state filed a similar lawsuit against competitor Kalshi.
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state → file → Kalshi
That followed the state suing Coinbase and Gemini for offering users the ability to bet on “sports, entertainment, and elections, in violation of New York laws”, according to a release from the attorney general’s office at the time.
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state → follow → time
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The state accused all the companies of operating without licences from the State Gaming Commission.
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state → charge → Commission
“Our gambling laws exist to protect New Yorkers, prevent the potential harms of problem gambling, and ensure funding for educational and public benefit programs,” James said in a statement announcing the suit.
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James → exist → suit
“By skirting New York’s laws, Polymarket is targeting the most vulnerable and depriving New York families of critical services and support.
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Polymarket → skirt → services
My office will never hesitate to take action to defend our laws and keep New Yorkers safe.”
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office → hesitate → Yorkers
The suit also alleges that the company encouraged gambling among young people.
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company → allege → people
It accuses Polymarket of targeting users as young as 18, while state law requires users to be at least 21 years old to take part in mobile sports betting.
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law → accuse → betting
“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,” New York Governor Kathy Hochul said in a statement.
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Hochul → run → statement
The more than 30-page lawsuit claims that Polymarket, which is valued at more than $20bn, has advertised sports betting in particular since July 2025.
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which → claim → July
It pointed to a post on X from August 17, 2025, about the launch of its US mobile app that said it was “BAD NEWS (For sportsbooks)”.
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it → point → sportsbooks
Prediction markets allow users to wager on so-called event contracts, covering political events, sports, elections and even award shows.
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users → allow → events
Concerns about the role of prediction markets came to a head earlier this year when wagers were made in the hours before the United States and Israel first struck Iran, prompting widespread backlash in Washington.
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States → come → Washington
Polymarket pushed back on the allegations.
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Polymarket → push → allegations
“We chose to engage with them directly on the substance and address their concerns,” chief legal officer Neal Kumar said in a statement.
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Kumar → choose → statement
“They preferred the media hit.
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media → prefer → 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.”
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we → want → markets
Kalshi is facing similar allegations in New York State.
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Kalshi → face → State
Kalshi has been critical of reporting on lawsuits against it and allegations that it is akin to a sports betting or gambling platform.
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it → report → platform
Polymarket did not respond to Al Jazeera’s request for comment.
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Polymarket → respond → comment
The Polymarket lawsuit comes days after reporting from the Wall Street Journal that alleged a wave of users had linked stolen bank debit cards and then used them to make wagers, effectively draining the accounts.
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wave → come → accounts
According to the report, when CEO Shayne Coplan was made aware of the issue, he responded: “Just keep growing and pay a fine if regulators ever find out.”
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regulators → accord → fine
New York State’s lawsuit joins a growing list of states that have sued prediction market platforms, including Arizona, Massachusetts, Nevada and many others.
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that → join → Arizona
Those states are at odds with the federal government, as the Commodity Futures Trading Commission has claimed that the federal agency exerts authority over the regulation of prediction markets.
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agency → claim → markets
Polymarket has close ties with the family of US President Donald Trump.
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Polymarket → have → Trump
The prediction market platform has investment from 1789 Capital, a venture capital firm backed by Donald Trump Jr, the president’s eldest son, who also serves on the company’s advisory board.
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who → have → board
The Aporia
