Lawsuit seeks to end Polymarket’s alleged illegal gambling operation and get restitution for users
The State of New York is suing Polymarket for running an illegal gambling operation through its prediction market platform.
The lawsuit filed Thursday by New York Attorney General Letitia James claims that Polymarket has operated an illegal gambling business in New York since December 2025, allowing users to bet money on the outcome of sporting events without holding the required New York gaming license.
The lawsuit also alleges that Polymarket has persistently advertised sports betting to New York residents since its launch in 2025, and accepted bets from users under the age of 21.
“Our gambling laws exist to protect New Yorkers, prevent the potential harms of problem gambling, and ensure funding for educational and public benefit programs,” said Attorney General James. “By skirting New York’s laws, Polymarket is targeting the most vulnerable and depriving New York families of critical services and support. My office will never hesitate to take action to defend our laws and keep New Yorkers safe.”
The lawsuit seeks a court order stopping Polymarket from continuing to operate a gambling business in New York without being licensed by the New York State Gaming Commission. It also seeks a fine equal to three times the gains made through the illegal actions, forfeiture of all illegal gains, and financial restitution to users.
New York Governor Kathy Hochul said: “I will always stand up for New Yorkers when bad corporate actors prey on consumers and threaten tax dollars that fund schools and critical public services. 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. Nobody is above the law in our state, and working with Attorney General James, we are fighting to protect New Yorkers and put this illegal operation to an end.”