New York sued Polymarket today, alleging that it runs an “illegal gambling operation” through its prediction market. Polymarket is “sidestepping its obligation to pay taxes like licensed casinos and mobile sports gambling platforms do,” New York said. New York previously sued Kalshi, Polymarket’s chief rival.
The Trump administration is on the side of the prediction markets, with the Commodity Futures Trading Commission (CFTC) asserting exclusive jurisdiction over the platforms. In August, the CFTC declared a “market emergency” in New York in an attempt to stop the state from applying its gambling laws to Kalshi. Polymarket and its rival Kalshi offer sports bets in the form of “event contracts” or “swaps,” which state governments and some courts say are just gambling with a different name.
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