New York sues Polymarket over unlicensed gambling operation

New York has sued prediction market Polymarket, accusing it of running an unlicensed gambling business in the state and seeking to halt the disputed operations and impose financial penalties. The case follows similar action against rival Kalshi and fuels the debate over whether prediction markets are financial products or gambling.

• New York seeks to stop Polymarket's unlicensed operations and impose penalties
• The state previously filed a similar suit against rival Kalshi
• Platforms argue their event contracts are federally regulated derivatives
• The dispute covers contracts on sports, elections and other events