New York Attorney General Letitia James and Governor Kathy Hochul announced Thursday that the state was filing a lawsuit against Polymarket for running what the state calls an illegal, unlicensed gambling operation. The state also alleges that Polymarket allows people under the age of 21 to gamble, something expressly forbidden under New York law.

Gov. Hochul released a statement Thursday alleging that Polymarket was a “bad corporate actor” that’s preying on consumers and not paying tax dollars that fund schools and public services.

“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,” Gov. Hochul said. “Nobody is above the law in our state, and working with Attorney General James, we are fighting to protect New Yorkers and put this illegal operation to an end.”

Platforms like Polymarket insist they don’t allow gambling and prefer the term “prediction market.” But the state says it meets the legal definition of gambling “because the outcomes of the events on which its users are betting are uncertain and outside the control of the bettor or hinge on a game of chance.” The lawsuit filed Thursday seeks to stop Polymarket from operating in the state entirely and pay restitution.

New York isn’t the first state to try to go after the prediction markets like Polymarket and Kalshi. Nevada, Minnesota, Kentucky, and a host of others have tried to restrict their operations over allegations of illegal sports betting.

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