New York State Sues To Block Polymarket

(MENAFN- Yolo Wire) New York has become the latest U.S. state to try and block Polymarket from operating in its jurisdiction.

New York's government is accusing the prediction market of operating an illegal gambling operation and has asked a court to block it from operating within the state.

In a joint statement, New York Attorney General Letitia James and New York Governor Kathy Hochul accused Polymarket of "skirting" state laws that regulate gambling.

The lawsuit also claims that Polymarket is putting underage New Yorkers at risk. The prediction market enables people to bet on real-world events such as sports and election outcomes.

"By running an unlicensed gambling operation, Polymarket has done more than just knowingly violate state law, they have put New Yorkers at risk, especially those underage who are most vulnerable to problem gaming," said Hochul in the statement.

Other U.S. states, including Massachusetts and Rhode Island, have taken similar legal action against Polymarket and its main rival Kalshi.

A dispute is underway over whether prediction markets should be regulated by U.S. states or the federal government. Traditionally, gaming has fallen under state control.

New York prosecutors argue that Polymarket's contracts meet the state's definition of gambling and therefore require a license from the New York State Gaming Commission.

New York said it wants the court to direct Polymarket to permanently stop doing business in the state, including advertising, until it properly registers.

In response to the lawsuit, Polymarket said it plans to remain in New York City, where the company was founded and continues to operate.

As a private company, Polymarket's stock does not trade on a public exchange.

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