New York Sues Polymarket Over Alleged Illegal Gambling
The case could force a federal-versus-state showdown over event contracts, with New York seeking restitution, forfeiture and penalties tied to alleged gains.
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The case could force a federal-versus-state showdown over event contracts, with New York seeking restitution, forfeiture and penalties tied to alleged gains.
The case adds to a widening state-federal fight over prediction-market oversight, with New York seeking a permanent halt, fines and registration requirements for Polymarket.
The case puts prediction-market legality and Polymarket's decentralized model under fresh regulatory pressure in a major US financial center.
The temporary restraining order hits Kalshi in its home state, where its political-event contracts already won a CFTC fight last year. Sports betting is a bigger and more legally crowded lane.
The geoblock is the headline, but the deeper read is jurisdictional: every prediction market now has to assume gambling regulators can flip a switch overnight, regardless of how good its transaction…
The block lands hours before Polymarket's largest event markets settle, with the regulator citing illegal gambling and possible wager manipulation, not the prediction-market model itself.
ANJ's ISP-level block is the second EU jurisdiction to wall off Polymarket this year, signaling a widening regulatory front against US-based prediction markets operating without local licenses.
The Ninth Circuit panel rejected the federal-jurisdiction argument at the heart of both platforms' defense — letting state-court gambling cases proceed and tightening the legal vise on prediction…
Two hours of bipartisan grilling landed hardest on three structural points — cheating scandals, youth marketing, and a federal-versus-state turf war the CFTC is already litigating in five states.