Polymarket sues New York’s Hochul & James after state’s own suit

The prediction market says New York’s gambling laws are pre-empted by federal law.

The hit

Polymarket has countersued New York Gov. Kathy Hochul & Attorney General Letitia James after the two officials sued the platform for allegedly running illegal gambling, according to Casino.org. Polymarket wants a ruling that New York’s gambling laws are pre-empted.

Why it matters

The fight centres on whether Polymarket’s event contracts count as gambling or federally regulated trading. Polymarket argues it earns a flat fee per transaction, unlike a sportsbook, & does not profit when a user loses. The question at stake: which law governs prediction markets tied to sports outcomes.

The record

Polymarket’s counter-filing	Civil complaint alleging “imminent & irreparable harm” from the state’s suit
State’s investigation finding	Polymarket ran an “illegal, unlicensed gambling operation” open to ages 18+ (AG James’s office)
Legal basis cited	Commodity Exchange Act, enforced by the Commodity Futures Trading Commission
Requested venue	New York’s federal Southern District Court

What happens next

Watch for a ruling on Polymarket’s bid to shift the case, plus whether a federal judge weighs in.

Sources: Polymarket Countersues New York Gov. Hochul, AG Letitia James

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