New York Attorney General Letitia James and Governor Kathy Hochul are seeking to stop Polymarket from operating in the state, alleging that the prediction-market platform runs without a required license. The lawsuit characterizes Polymarket as an “illegal gambling operation” and argues that its activities expose New Yorkers to gambling-related harms. The action could add regulatory pressure to a platform that allows users to trade on the outcomes of events, although the supplied report does not provide details on the requested remedies or Polymarket’s response. Decrypt reported the development on September 24, 2026. The case highlights an ongoing legal question over how prediction markets should be treated under state gambling rules. No impact on the digital assets listed alongside the report was specified.
