New York files lawsuit against Polymarket for alleged illegal gambling

<p>The state of New York filed a lawsuit against Polymarket on September 24, 2026, claiming that the company operates an "illegal gambling operation" through its prediction market.</p><p>Governor Kathy Hochul stated in a press release, "By running an unlicensed gambling operation, Polymarket has done more than just knowingly violate state law, they have put New Yorkers at risk, especially those underage who are most vulnerable to problem gaming."</p><p>New York officials allege that Polymarket is "sidestepping its obligation to pay taxes like licensed casinos and mobile sports gambling platforms do." They emphasized that tax revenue from regulated gambling supports public schools, sports programs for underserved youth, and problem gambling education and treatment.</p>