New York seeks to halt Polymarket US as unlicensed gambling operation
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New York reportedly sued to halt Polymarket US operations in the state. It alleges that sports-related prediction-market contracts amount to unlicensed gambling, while Polymarket says it will contest the suit.
The state challenges event contracts as unlicensed gambling
According to Ars Technica, New York filed suit in New York County court alleging that Polymarket US accepts wagers through prediction-market “event contracts” without a state gambling license. The state is reportedly seeking to halt the operation, obtain fines and forfeiture of alleged illegal gains, and secure restitution for users. Polymarket told Ars Technica it would fight the lawsuit.
The article says New York had previously sued Polymarket rival Kalshi. It does not establish a comparable prior legal outcome for Polymarket.
New York has reportedly brought a lawsuit against QCX LLC, known as Polymarket US, and is seeking an order to stop it from operating as an unlicensed gambling business in the state.
The case adds Polymarket to the conflict over whether sports-related prediction-market contracts fall under state gambling rules or exclusive federal Commodity Futures Trading Commission jurisdiction. The article notes that federal appeals courts have reached differing outcomes in related disputes involving Kalshi.
Sources
- Ars TechnicaNew York defies Trump admin, asks court to shut down Polymarket gamblingRead source →