New York sues Polymarket over alleged illegal gambling

New York has sued prediction-market platform Polymarket, alleging it is running an illegal gambling operation, according to CoinDesk. The lawsuit escalates state-level scrutiny of event-contract platforms as they expand across the U.S.

• The action targets Polymarket's election and event prediction contracts.
• It follows ESMA warnings that Polymarket and rival Kalshi lack authorization for EU customers, adding to mounting regulatory pressure on the sector.

No details on the specific claims, penalties sought, or Polymarket's response have been disclosed.