Letitia James Sues Polymarket Over Alleged 'Illegal Gambling': New York Attorney General Alleges Crypto Betting Marketplace Targets 'Most Vulnerable'

Polymarket has filed a countersuit against New York Attorney General Letitia James after she accused the company of promoting illegal gambling through its prediction markets, which allegedly operate without a license from the New York State Gaming Commission. James's lawsuit seeks to have Polymarket forfeit illegal gains and pay restitution to affected consumers. In response, Polymarket has moved the case to federal court, asserting that the Commodity Futures Trading Commission (CFTC) has exclusive authority over prediction markets. This legal battle is part of a larger discussion regarding the regulation of such markets, with multiple lawsuits targeting CFTC-registered exchanges.