On September 24, 2026, in New York, the state attorney general filed a lawsuit against Polymarket, a prediction market platform, accusing it of operating as an illegal gambling business. Polymarket responded by suing the state in federal court to block regulation, arguing that federal law preempts state oversight. The company maintains its operations are peer-to-peer trading, not gambling. Governor Kathy Hochul supported the state's action, citing risks to underage users. The CFTC, which has resisted state regulation, did not comment. This case is part of broader state efforts to regulate prediction platforms.
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