New York Attorney General Targets Polymarket for Unlawful Gambling

WHO:

Wall Street Journal - New York Attorney General Letitia James is involved in the lawsuit against Polymarket US.

Cointelegraph - State lawmakers are part of the legal action against Polymarket.

NY Post - Polymarket is the company being sued for illegal gambling operations.

WHAT:

CNBC - Polymarket has countersued New York state over the allegations of "unregulated gambling."

CNN - The prediction markets for the 2026 midterms have seen a combined trading volume of over $750 million, with the "who will control Congress" markets specifically reaching $32 million in trading volume.

CNN - A trader named Nicholas Jager reported profits of $1.3 million this year from prediction markets, stating, “The markets have been pretty good … Wisconsin was a miss.”

CNN - A trader named Dan Rogalski has profited $600,000 across platforms and ranked 20th on Kalshi’s leaderboard for election traders as of Thursday.

Techmeme - New York AG Letitia James is suing Polymarket US, alleging that the site is illegally running a gambling operation as part of New York's crackdown on prediction markets.

Bloomberg Markets - New York announced it was suing Polymarket US for allegedly running an illegal gambling operation, escalating the legal fight against prediction markets in the state.

Ars Technica - New York is asking the court to shut down Polymarket's gambling operations, defying the Trump administration's attempts to override state gambling laws.

CNBC - The lawsuit against Polymarket was filed two months after New York's lawsuit against Kalshi.

Engadget - New York has illegal gambling charges underway against four prediction market businesses.

CNN - The “who will control Congress” markets on Kalshi and Polymarket have seen a combined $32 million in trading volume as of this week.

CNN - More than 80% of the prediction business still comes from sports, though election markets have grown significantly.

CNN - A trader named Nicholas Jager reported profits of $1.3 million this year from prediction markets, stating, “The markets have been pretty good … Wisconsin was a miss.”

CNN - A trader named Dan Rogalski has profited $600,000 across platforms and ranked 20th on Kalshi’s leaderboard for election traders as of Thursday.

CNN - More than $750 million in combined trading volume on 2026 election markets has been reported on Kalshi and Polymarket.

CNN - The “who will control Congress” markets on Kalshi and Polymarket have seen a combined $32 million in trading volume.

CNN - A trader named Nicholas Jager reported profits of $1.3 million this year from prediction markets.

CNN - A trader named Dan Rogalski has profited $600,000 across platforms and ranked 20th on Kalshi’s leaderboard for election traders.

Wall Street Journal - New York AG Letitia James has filed a lawsuit against Polymarket US, alleging that the site is illegally running a gambling operation.

Cointelegraph - The lawsuit against Polymarket follows a similar lawsuit against prediction markets company Kalshi in July, which also alleged illegal gambling operations.

NY Post - The lawsuit accuses Polymarket of running an illegal gambling operation that circumvents industry regulations.

Bloomberg Markets - New York is escalating its legal fight against prediction markets with this lawsuit against Polymarket US.

WHERE:

Wall Street Journal - The lawsuit is filed in New York, one of the largest markets for prediction markets.

Bloomberg Markets - The legal action is taking place in New York.

WHEN:

NY Post - The lawsuit against Polymarket was announced on a Thursday.

WHY:

CNN - Election officials express concerns that prediction markets could create new avenues for disinformation about mass voter fraud and elections being rigged.

Wall Street Journal - The lawsuit is part of New York's crackdown on prediction markets.

Bloomberg Markets - The state is targeting Polymarket for allegedly running an unlicensed gambling operation.

HOW:

CNN - Kalshi disclosed new cases of insider trading, including one involving Laurie Buckhout, the GOP nominee in a battleground House race in North Carolina, who paid a fine of about $2,600.

CNN - Kalshi has disclosed new cases of insider trading, including one involving Laurie Buckhout, the GOP nominee in a battleground House race in North Carolina, who paid a fine of about $2,600.

Wall Street Journal - The lawsuit alleges that Polymarket is operating outside of industry regulations.

(UPDATED September 25, 2026 07:08 UTC)

Polymarket has countersued New York state over allegations of "unregulated gambling," marking a significant legal move in the prediction market landscape. Meanwhile, trading volumes for the 2026 midterms have soared to over $750 million, with $32 million specifically focused on who will control Congress, while traders like Nicholas Jager and Dan Rogalski have reported substantial profits this year. However, election officials are raising concerns that these prediction markets could open doors to disinformation regarding voter fraud, and Kalshi has revealed new cases of insider trading, including one involving GOP nominee Laurie Buckhout, who faced a fine of about $2,600.

(UPDATED September 25, 2026 02:59 UTC)

New York Attorney General Letitia James is suing Polymarket US, claiming the site is illegally operating a gambling operation as part of the state's crackdown on prediction markets. This lawsuit marks a significant escalation in New York's legal battle against these types of markets. Meanwhile, Kalshi has revealed new insider trading cases, including one involving Laurie Buckhout, the GOP nominee in a key House race in North Carolina, who has been fined approximately $2,600.

(UPDATED September 25, 2026 01:20 UTC)

New York is taking legal action to shut down Polymarket's gambling operations, challenging the Trump administration's efforts to override state gambling laws. This lawsuit comes just two months after New York filed a similar case against Kalshi. The developments highlight ongoing tensions between state regulations and federal policies regarding gambling.

(UPDATED September 24, 2026 22:01 UTC)

New York is pursuing illegal gambling charges against four prediction market businesses, as trading in these markets has surged, with a combined volume of $32 million this week on platforms like Kalshi and Polymarket. Notably, while over 80% of the prediction business still revolves around sports, election markets are gaining traction, with traders like Nicholas Jager reporting profits of $1.3 million this year. Additionally, Kalshi has revealed new cases of insider trading, including one involving Laurie Buckhout, the GOP nominee in a key House race in North Carolina, who was fined approximately $2,600.

(UPDATED September 24, 2026 18:59 UTC)

More than $750 million in combined trading volume has been reported on election markets at Kalshi and Polymarket, with $32 million specifically focused on who will control Congress. Notably, trader Nicholas Jager has made headlines with profits of $1.3 million this year, while Dan Rogalski has earned $600,000 and ranks 20th on Kalshi’s leaderboard for election traders. However, Kalshi has also disclosed new cases of insider trading, including one involving Laurie Buckhout, the GOP nominee in a crucial House race in North Carolina, who was fined approximately $2,600.

(UPDATED September 24, 2026 16:59 UTC)

New York Attorney General Letitia James has filed a lawsuit against Polymarket US, accusing the company of illegally running a gambling operation that circumvents industry regulations. This legal action, which is part of New York's broader crackdown on prediction markets, follows a similar lawsuit against another prediction markets company, Kalshi, in July. The lawsuit was announced on a Thursday and is taking place in New York, one of the largest markets for prediction markets.