New York Attorney General Letitia James and Governor Kathy Hochul have filed a lawsuit against Polymarket for “running an illegal gambling operation,” seeking a court order which would forbid the prediction market from offering event contract trading to residents.
Along with the court order, James and Hochul are also requesting Polymarket forfeit all illegal gains, distribute restitution to affected users and pay fines equal to three times its profit from New York operations.
“Our gambling laws exist to protect New Yorkers, prevent the potential harms of problem gambling and ensure funding for educational and public benefit programs,” James said.
“By skirting New York’s laws, Polymarket is targeting the most vulnerable and depriving New York families of critical services and support. My office will never hesitate to take action to defend our laws and keep New Yorkers safe.”
James and Hochul also filed enforcement action against Kalshi in July, arguing prediction markets meet New York's legal definition of gambling because users wager on events with uncertain outcomes which are beyond their control.
New York’s Office of the Attorney General conducted an investigation shortly after Polymarket launched in December 2025, which described the prediction market as an “illegal, unlicensed gambling operation that exposes New Yorkers… to serious personal and financial risk.”
Also speaking on the September 24 lawsuit, Hochul said: “I will always stand up for New Yorkers when bad corporate actors prey on consumers and threaten tax dollars that fund schools and critical 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. 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.”
Polymarket recently extended its presence in New York through a collaboration with NBA star LeBron James on September 8, helping to promote the operator’s new headquarters in the Empire State.
Within the social spot, James is not the only professional athlete to make an appearance, as former NFL players Eli Manning, Reggie Bush and Richard Sherman all take part in the promotion.
The NYSGC reported the state’s total casino activity for July on September 14, as commercial operators in the Empire State combined to generate $64.9m of GGR, equating to growth of 7.1%
