According to CoinMeta, New York Attorney General Letitia James and Governor Kathy Hochul filed a lawsuit against the prediction market provider Polymarket on Thursday, accusing the platform of operating illegal gambling in the state. The lawsuit seeks to ban the company from operating in New York without a gambling license, requires Polymarket to give up its alleged illegal profits, pay compensation to customers, and face a fine equivalent to three times those profits. Polymarket launched its US platform in December 2025, allowing users to bet on the outcomes of sporting events. New York State considers these contracts to constitute gambling under state law, as users place bets on events with uncertain outcomes. The state also stated that Polymarket allows people aged 18 to 20 to use the platform, while New York State requires that users participating in mobile sports betting be at least 21 years old. This case intensifies the struggle between prediction markets and state gambling regulators over who has the authority to regulate these products.