New York Attorney General Letitia James has filed a lawsuit against prediction markets platform Polymarket, alleging that the company's offering of contracts related to sporting events violates state gambling laws. The lawsuit, filed on Thursday, follows similar actions against Kalshi in July and prediction market platforms run by Coinbase and Gemini in April.
The filing cited Polymarket's sporting event contracts on its mobile app, launched in December 2025, including its advertising practices to New Yorkers. State officials could also seek to block the platform to residents. The lawsuit argues that Polymarket seeks to avoid legal and financial consequences of New York's close regulation of gambling by offering what is essentially wagering under the guise of 'event contracts' on a 'prediction market'.
The case against Polymarket is the latest example of US state authorities at odds with federal agencies over who has authority in regulating and overseeing prediction markets. US Commodity Futures Trading Commission Chair Michael Selig has claimed that the federal agency has 'exclusive jurisdiction' over the companies.
Earlier this month, New Jersey officials petitioned the US Supreme Court to hear arguments over its case against Kalshi, seeking a decision that could potentially clarify who should oversee the prediction markets industry. The court has not announced whether it will weigh in on the matter.
