New York Governor Kathy Hochul and Attorney General Letitia James have sued Polymarket for operating an unlicensed gambling business through its prediction market platform.
Polymarket launched in the United States in December 2025, positioning itself as a betting service for sports and other outcomes. The investigation found the platform operates without a New York State Gaming Commission licence and accepts users from 18, while the legal age for mobile betting in the state is 21. Authorities argue Polymarket's prediction markets meet the definition of gambling because event outcomes do not depend on participant skill.
The suit seeks to shut down Polymarket, seize all illegal profits, compensate users and impose fines at three times the profit amount. The lack of a licence means Polymarket avoids taxes that fund schools and problem gambling programmes.
The National Institutes of Health reports early access to gambling raises the risk of depression, anxiety and financial harm. The American Psychological Association says 32% of people with gambling disorders experience suicidal thoughts.
This is not the state's first action against unlicensed operators. In September 2026 the Attorney General recovered $8 million from the largest sweepstakes casino operator. A suit against Kalshi was filed in July, and cases against Coinbase and Gemini for illegal gambling platforms followed in April.
