New York Sues to Block Polymarket’s Unlicensed Operations

Has New York already banned Polymarket?

No. The state has asked a court to permanently block Polymarket from operating an unlicensed gambling business in New York, but the requested injunction has not yet been granted.

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Why does the lawsuit matter for Polymarket?

An adverse ruling could restrict Polymarket’s access to New York and create potentially material financial liabilities through restitution, disgorgement and penalties.

Is the fine limited to $100,000?

No. The petition seeks $100,000 for each unauthorized offer or attempted offer of sports wagering, plus a penalty equal to three times Polymarket’s alleged illegal gains, restitution, disgorgement, damages and costs.

Why does New York say Polymarket is operating illegally?

New York alleges Polymarket’s event contracts constitute gambling and that the company operates and advertises sports wagering in the state without a New York State Gaming Commission license.

Is Polymarket leaving New York?

Not according to the company. Chief Legal Officer Neal Kumar said Polymarket is staying in New York and has been working with the state to address its concerns.

What happens next?

The court must determine whether New York has established its claims and whether to grant the requested injunction and monetary relief.