New York Attorney General Letitia James sued Polymarket on Thursday, alleging its prediction-market business violates state laws against illegal gambling.
James filed a similar case against rival Kalshi nearly two months earlier and petitions against Coinbase Financial Markets and Gemini Titan in April.
Prediction markets let users wager through event contracts on outcomes including sports, elections and cultural events. The Commodity Futures Trading Commission says it has exclusive authority to regulate them, while federal appeals courts are divided over oversight, raising the possibility the Supreme Court may have to decide.
