New York state has filed a lawsuit against Polymarket, alleging that the prediction-market platform is operating an illegal gambling business without the required license, according to CoinDesk. The state is seeking an order that would prevent Polymarket from continuing to operate in New York without a gambling license. It is also pursuing the recovery of gains that it alleges were obtained illegally. The case places Polymarket’s operating model under scrutiny as regulators examine whether its platform falls within gambling rules. The source material does not provide details on the amount of allegedly illegal gains, the specific legal claims, or a response from Polymarket. The lawsuit is a state-level action and its outcome could determine whether the platform can continue operating in New York under its current structure.
