New York sued to block Polymarket from operating in the state|1924848uejdjfik|CC BY 4.0
The state sued prediction market platform Polymarket on Thursday, alleging it risks its residents and underage users.
The lawsuit, filed yesterday, is backed by Attorney General Letitia James and Governor Kathy Hochul. It seeks a court order prohibiting the platform from operating in the state, requiring it to pay restitution to users, and imposing financial fines.
It comes just a month after the state sued Kalshi for the same reason.
In response, Polymarket filed a counter-lawsuit in Manhattan federal court the same evening to block state regulation.
Polymarket argues that the US Commodity Futures Trading Commission already regulates prediction markets and that they are not a gambling business. Prediction markets have contended that state gambling regulations do not apply to them.