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New York sues prediction market Polymarket
BNN Bloomberg • • business
Key Points:
- New York has filed a lawsuit against prediction market platform Polymarket, accusing it of operating an unlicensed gambling business and seeking to block its operations in the state.
- The lawsuit demands fines and restitution for users, citing Polymarket's failure to obtain a state gaming license, following similar actions against platforms like Kalshi, Coinbase, and Gemini.
- Governor Kathy Hochul emphasized that Polymarket’s unlicensed operations put New Yorkers, especially minors, at risk of problem gambling.
- Polymarket’s Chief Legal Officer Neal Kumar stated the company will fight the lawsuit and affirmed their commitment to staying and operating in New York.
- Prediction market platforms argue they differ from traditional gambling as users trade contracts against each other, akin to stock markets, and contend that they fall under federal regulation by the Commodity Futures Trading Commission rather than state oversight.
