New York vs. Polymarket: Legal Battle Over Gambling Laws

New York State's Attorney General’s Office launched a legal complaint against Polymarket U.S. on Thursday, alleging that the prediction market platform offered unregulated gambling in the state. However, Polymarket has swiftly responded by filing a number of lawsuits, seeking to move the case away from state court to a federal one and targeting the state's Gaming Commission and AG.

New York AG Letitia James wrote that Polymarket was skirting the state’s gambling laws and targeting its most vulnerable, depriving families of critical services and support. New York Gov. Kathy Hochul has backed the move against Polymarket, echoing the sentiment expressed by the AG’s Office.

Polymarket has also filed separate civil lawsuits against AG James and the New York State Gaming Commission, insisting that states are not allowed to interfere with federal laws and regulations. The state is seeking a penalty payment from Polymarket, which it estimates as three times the amount of any Polymarket gains while operating in the state. Polymarket has reminded New York that the company was founded in a tiny apartment in New York City, and that it employs 350 people locally. Neal Kumar, the chief legal officer for the platform, said that Polymarket will fight for their users.