New York has filed a lawsuit against Polymarket, alleging the platform operates as an unlicensed gambling service by bypassing key financial regulations through its prediction market model. The legal action marks another escalation in regulatory scrutiny over decentralized betting platforms that claim to function outside traditional gambling laws. Authorities argue the company’s structure enables wagering on events without proper oversight, raising concerns over consumer protection and financial compliance. The case could set a precedent for how prediction markets are classified and governed in the future.
New York on Thursday sued Polymarket, accusing the company of running an illegal gambling operation that skirts around industry regulations in the latest challenge against prediction markets.
