New York has initiated legal action against Polymarket, charging the forecasting platform with running an unlawful betting enterprise and requesting a judicial injunction to halt its operations within the state.
On Thursday, New York Attorney General Letitia James alongside New York Governor Kathy Hochul charged Polymarket with evading state regulations.
“By evading New York’s statutes, Polymarket preys upon the most at-risk populations and strips New York households of vital services and assistance,” James remarked in a press release. “My department will never hesitate to step in to protect our statutes and secure the safety of New Yorkers.”
Hochul stated that Polymarket was endangering underage residents of New York.
“By operating an unauthorized betting platform, Polymarket has gone beyond knowingly breaching state regulations; they have endangered New Yorkers, particularly minors who are heavily susceptible to gambling addiction,” Hochul stated.
Thursday’s legal filing represents New York’s most recent effort to curb forecasting markets. Back in July, the state filed suit against Kalshi over comparable claims. Additional states, such as Massachusetts and Rhode Island, have likewise initiated legal proceedings against Kalshi and Polymarket amidst an escalating conflict regarding whether forecasting markets ought to fall under state or federal oversight.
New York prosecutors maintain that Polymarket’s agreements satisfy the state criteria for wagering and consequently demand authorization from the New York State Gaming Commission. They further charge the enterprise with dodging levies linked to licensed betting activities.
“Such tax income derived from wagering oversight supports public schools, athletic initiatives for underprivileged youth, along with gambling addiction awareness and care,” the NYAG noted in an official release.
New York indicated it is asking the judiciary to compel Polymarket to permanently cease operations, encompassing promotional activities, within the territory unless it obtains proper authorization, alongside demanding a penalty of $100,000 among additional fines.
Polymarket Chief Legal Officer Neal Kumar stated that the enterprise is remaining in New York and noted that it had been collaborating with officials to resolve issues.
“Polymarket started in a compact New York City flat and presently employs over 350 personnel locally, representing the exact reason individuals and enterprises relocate here to succeed,” Kumar noted. “We have faith in New York and we are not leaving.”
Originally published at https://www.theblock.co/news/regulation/2026-09-24-new-york-block-polymarket-alleging-illegal-gambling-operation-416279.
