WSJ Tech News Briefing · Thursday, September 24, 2026
New York State has filed a lawsuit against Polymarket's domestic arm, alleging it operates an illegal gambling business. This action follows similar suits against rival Kalshi and accusations against Coinbase and Gemini Titan for allegedly breaking state gambling laws with their prediction markets. Polymarket intends to contest the lawsuit, while state officials argue these markets are unlicensed and reduce tax revenue, a claim disputed by operators who state they are federally regulated.
“New York State sued Polymarkets domestic arm today, alleging its operating an illegal gambling business.”
“Polymarket's chief legal officer said in a statement, it'll fight the lawsuit.”
“States nationwide have accused prediction markets of running unlicensed operations that cut into tax revenues, but prediction market operators say they are federally regulated, a position backed by the Trump administration.”