The State of New York filed suit against another prediction market for its sports offerings, reportedly seeking at least $4.6 billion in damages from Polymarket.
Front Office Sports reported that New York filed suit on Thursday in state court, seeking restitution to customers and heavy fines.
As with previous legal action against prediction markets like Kalshi, Coinbase and Gemini, the attorney general’s office claims that the companies are operating outside regulations established for licensed gambling.
While customers of traditional sportsbooks bet against the house with fixed odds, prediction markets offer peer-to-peer contracts with prices that move based on supply and demand.
New York’s action against Polymarket claims violations of the state constitution as well as a disregard for the Federal Interstate Wire Act, among other claims.
New York requires participants in sports betting to be at least 21 years old, while Polymarket offers its services to customers 18 and older.
Polymarket moved the proceedings to federal court then filed a countersuit in New York federal court against attorney general Letitia James and the New York State Gaming Commission claiming the state’s suit would be detrimental to the company.
According to the report, federal court is potentially more favorable toward prediction markets.
Polymarket was barred from operating in the United States for nearly four years after a 2022 settlement with the Commodity Futures Trading Commission. Polymarket relaunched in the U.S. in December.
–Field Level Media
