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Polymarket sued by New York over alleged illegal gambling operations
New York Attorney General Letitia James and Governor Kathy Hochul have filed a lawsuit against Polymarket US, accusing the prediction market operator of running an unlicensed gambling business. The state alleges that Polymarket’s event contracts, which cover sports, elections, and pop culture, meet the legal definition of gambling because they involve wagering on uncertain outcomes outside of a user's control.
The lawsuit claims Polymarket has not obtained the necessary licenses from the New York State Gaming Commission and is sidestepping state taxes that fund public services. Additionally, officials allege the platform targets users as young as 18, violating New York’s requirement that mobile sports bettors be at least 21 years old.
New York is seeking an injunction to halt the company's operations in the state, restitution for affected users, forfeiture of allegedly illegal profits, and civil penalties totaling three times the company's gains.
Polymarket has responded by filing its own lawsuit in federal court, arguing that its contracts are federally regulated derivatives overseen by the Commodity Futures Trading Commission (CFTC). The company contends that federal law preempts state gambling regulations and that the state's actions create an impossible choice between obeying state law and maintaining its federal right to operate.
Entities
Commodity Futures Trading Commission · Kathy Hochul · Letitia James · Neal Kumar · New York State · New York State Gaming Commission · Polymarket
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 20 SOURCES] The lawsuit seeks an injunction to halt Polymarket's operations in the state. www.tronweekly.com · world-today-journal.com · usaherald.com · defirate.com · bitcoinke.io · +15 more
- [● 20 SOURCES] Polymarket allows users as young as 18 to participate, while New York law requires users to be at least 21 for mobile sports betting. english.alsiasi.com · www.tronweekly.com · world-today-journal.com · usaherald.com · defirate.com · +15 more
- [DISPUTED] Polymarket is operating an unlicensed gambling operation that violates state laws. english.alsiasi.com · world-today-journal.com · www.ibtimes.com · www.cryptopolitan.com · decrypt.co · +15 more
- [DISPUTED] Polymarket argues its platform is a federally regulated market designated by the CFTC, not a gambling operation. usaherald.com · www.cryptopolitan.com · cryptoslate.com · www.independent.co.uk · www.lawyer-monthly.com · +2 more
- [● 10 SOURCES] The state is seeking penalties equal to three times the allegedly illegal profits gained by Polymarket. www.tronweekly.com · world-today-journal.com · www.ibtimes.com · usaherald.com · decrypt.co · +5 more
- [● 5 SOURCES] Polymarket's Chief Legal Officer Neal Kumar stated the company will defend its users and maintain its presence in New York. krmg.com · www.troyrecord.com · www.pymnts.com · www.nadanews.com · www.businesstimes.com.sg