Polymarket and Kalshi face mounting legal pressure as New York regulators target prediction markets, alleging the platforms facilitate illegal gambling operations.
New York lawsuit alleges illegal gambling, creating regulatory and legal overhang for Polymarket.
A similar prior lawsuit against Kalshi is referenced, reinforcing legal risk for prediction markets.
New York lawmakers have filed a lawsuit against Polymarket, alleging the platform operates an illegal gambling business. This legal action mirrors a similar case brought against Kalshi in July, signaling a broader regulatory crackdown on prediction markets within the United States.
Regulators allege that these platforms are operating as illegal gambling businesses, prompting legal action to challenge their compliance with state laws.