New York sues Polymarket U.S., alleging illegal gambling
CNBC reports New York alleges Polymarket U.S. operates without a state gambling license. The federally regulated platform says it will fight the lawsuit, the latest in a dispute over who oversees prediction markets.
TLDR
CNBC reports New York sued Polymarket U.S. on September 24, 2026, nearly two months after suing Kalshi.
The attorney general's office alleges Polymarket runs an unlicensed gambling operation and allows users ages 18–20, despite New York's minimum age of 21 for mobile sports betting. The office seeks an order stopping the platform from operating without a state license, restitution for harmed users and fines equal to three times its alleged illegal gains.
CNBC says Polymarket U.S. is regulated by the Commodity Futures Trading Commission, which has sued several states while asserting its authority over prediction markets. Polymarket's chief legal officer called New York's lawsuit “recycled” and said the company would fight for its users.
CNBC disclosed a commercial relationship with Kalshi involving customer acquisition and a minority investment.
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