New York is suing Polymarket for operating an illegal gambling business.

- What's going on?

On Thursday, New York Attorney General Letitia James and Governor Kathy Hochul joined forces to sue Polymarket US, a business operated under the name QCX LLC, alleging that the outcome prediction platform was operating an illegal gambling operation in New York State.

What does the state of New York want from this court?

This case is about more than just shutting down the business: it's a matter of law.

• I'm asking the court to order that this company be barred from operating in New York without a gambling license.
• Let Polymarket sacrifice the profits that the state labels "illegally earned".
• I'd like to recover damages for my client.
• And charge a fine equal to three times the illegal profits.

Why does the state consider it "gambling"?

Polymarket launched the U.S. platform in December,[3] allowing users to place bets on sports events and said at the time that it would expand into other markets.

New York officials argue that these promises constitute state-sanctioned gambling because users are betting on events with uncertain outcomes.

Another issue is the age gap: Polymarket allows 18 to 20-year-olds to use its platform, while New York law requires mobile sports betting to be at least 21 years old.

Does this relate to users in Thailand?

Although the case was filed in the U.S., it points to an expanding trend: crypto prediction platforms are being heavily scrutinized by regulators around the world, especially as the line between "prediction market" and "gambling" begins to blur for users in Thailand, where most online gambling is already illegal. This signals that similar platforms in Asia may face similar legal pressures in the future.

What was Polymarket's response?

At the time of reporting, a spokesperson for Polymarket did not immediately respond to requests for comment.