New York Attorney General Sues Polymarket for Alleged Unlicensed Gambling
New York's attorney general has filed a lawsuit against Polymarket, accusing the prediction market of operating illegally without a gambling license in the state.
By Grace Whitfield · First published 24 Sept 2026
In brief
- New York Attorney General Letitia James filed a lawsuit against Polymarket on September 24, 2026.
- The suit claims Polymarket operates an unlicensed gambling business in violation of New York state law.
- Officials are asking the court to block Polymarket from operating in New York and to seize its profits.
- This legal action follows similar lawsuits against other prediction market platforms in recent months.
- Polymarket is preparing its response as the case moves forward in the New York state court system.
Timeline · 3 moments
New York Attorney General files lawsuit against Polymarket
ABCNews.com ↗State lawsuit seeks to block Polymarket and seize profits
The Defiant ↗New York moves against prediction market platforms after previous lawsuits
CNBC ↗How it started
Polymarket is a prediction market platform where users can bet on the outcomes of real-world events. The company has drawn attention from regulators for operating in the United States, where gambling laws are strictly enforced at the state level.
Concerns about whether prediction markets like Polymarket require gambling licenses have been growing. New York authorities have been increasingly active in scrutinizing similar platforms, setting the stage for this latest legal action.
How it unfolded
On September 24, 2026, the New York Attorney General's office announced a lawsuit against Polymarket US. The complaint accuses the company of running an unlicensed gambling operation and seeks to block it from doing business in New York, according to Bloomberg.
The attorney general's office claims that Polymarket's activities fall under the state's definition of gambling and therefore require a license, which Polymarket does not have. The lawsuit was filed in state Supreme Court, with the state also seeking to seize the company's profits, according to The Defiant.
This action comes after New York filed similar lawsuits against other prediction market platforms, including Kalshi, in the past two months, CNBC reported. The state's legal strategy appears to be targeting the broader industry, not just Polymarket.
Polymarket has acknowledged the lawsuit and is preparing a response. The company has not yet made detailed public statements addressing the specific allegations.
Where it stands
The lawsuit is now moving through the New York court system. Polymarket remains under scrutiny, but no court decision has been made yet.
The company continues to operate as it prepares its formal response. The outcome could have significant implications for prediction markets and gambling regulations in New York and potentially beyond.
What to watch
The next steps will involve legal filings from both the attorney general's office and Polymarket. A court hearing or preliminary rulings could clarify whether Polymarket must halt operations in New York.
Observers are watching to see if this case sets a legal precedent for other prediction markets operating in the United States.
More in Business
All →
US 30-Year Mortgage Rates Surge Past 7 Percent for First Time Since 2024
A jump in US mortgage rates to a two-year high could deepen the housing market slowdown, with affordability and borrowing costs under fresh pressure from inflation and geopolitical turmoil.
10 sources · over 2 days
National Stock Exchange of India Debuts on BSE and MSEI After Record IPO
The National Stock Exchange of India became a listed company after a $2.4 billion IPO, marking a major shift in India's financial sector.
8 sources · over 2 days
Starbucks to Close 250 North American Stores in Strategic Adjustment
Starbucks is shutting down about 1 percent of its cafes across the US and Canada this week, signaling a shift in its business approach.
9 sources · today