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 court filings. The state wants to block Polymarket from operating without a gambling license and recover what it says are illegally gained proceeds. The lawsuit escalates state-level scrutiny of event-contract platforms as they expand across the U.S., building on earlier ESMA warnings that Polymarket and rival Kalshi lack authorization for EU customers. No details on the specific claims or Polymarket's response were disclosed.