New York Attorney General Letitia James filed a lawsuit against Polymarket on Thursday, alleging that the prediction markets platform's event contracts violate state gambling laws.
The filing specifically targeted Polymarket's sporting event contracts available on its mobile app, which launched in December 2025, as well as its advertising practices directed at New York residents. State officials indicated they may seek to block the platform from operating for state residents.
According to the lawsuit, Polymarket attempts to circumvent New York's gambling regulations by marketing what amounts to wagering as "event contracts" on a "prediction market."
The Polymarket action represents the latest regulatory confrontation involving prediction markets. New York previously filed similar suits against Kalshi in July and against prediction market platforms operated by Coinbase and Gemini in April.
The case highlights a broader jurisdictional dispute between state and federal authorities. The US Commodity Futures Trading Commission Chair Michael Selig has asserted that the federal agency holds "exclusive jurisdiction" over prediction market companies, contradicting state-level enforcement efforts.
This regulatory tension has intensified recently. New Jersey officials petitioned the US Supreme Court earlier this month to hear arguments in its case against Kalshi, seeking a ruling that could clarify which regulatory body should oversee the prediction markets industry. The Supreme Court has not yet announced whether it will take the case.
