New York is suing Polymarket, alleging it operates an illegal gambling platform by offering prediction market contracts to users aged 18-20, below the state's 21-year-old threshold for mobile sports betting. The lawsuit highlights concerns about underage gambling risks and unpaid tax revenue, while also clashing with the Trump administration's CFTC, which has asserted exclusive federal jurisdiction over prediction markets.
Background
Prediction markets like Polymarket and Kalshi have faced ongoing regulatory battles between state gambling laws and federal commodities oversight, with the CFTC asserting authority over these platforms since 2022.
- Source
- Ars Technica
- Published
- Sep 25, 2026 at 03:07 AM
- Score
- 6.0 / 10