New York Wants Polymarket to Halt Operations; Company Won’t Back Down!
New York state sued Polymarket, alleging it operated an unlicensed gambling business, and asked the court to halt the platform’s operations and advertising in the state. The company’s chief legal officer, however, said Polymarket would stay in New York.
According to The Block, New York Attorney General Letitia James and Governor Kathy Hochul accused Polymarket of violating state laws on September 24. Officials argue that the contracts on the platform fall under the state’s definition of gambling and require a license from the New York State Gaming Commission.
The state is asking the court to order Polymarket to halt its business activities, including advertising, until it obtains the required registration. This is a request submitted to the court; the report does not say that a ban has been issued. New York is also seeking payment of $100,000 and other penalties.
What is the state accusing Polymarket of?
The attorney general’s office also alleges that Polymarket avoided taxes associated with regulated gambling activities. Governor Hochul argued that unlicensed operations put New Yorkers, particularly minors, at risk. These are allegations by state officials, not established findings by a court.
Polymarket: We’re staying in New York
Polymarket Chief Legal Officer Neal Kumar said the company was working with officials to address their concerns. Kumar said the company, which was founded in a small New York apartment and now has more than 350 employees there, believes in New York and will stay.
The statement makes clear the company’s intention to remain in the state; it does not mean the lawsuit has been resolved or that the court’s potential order halting operations will be overturned.
The lawsuit is the latest development in the dispute between states and the federal government over who has authority to regulate prediction markets. New York sued Kalshi in July over similar allegations. Legal proceedings against Kalshi and Polymarket are also underway in states including Massachusetts and Rhode Island.