New York Attorney General Letitia James and Governor Kathy Hochul have filed a lawsuit against Polymarket US, accusing the crypto prediction market of operating unlicensed gambling activities in New York State. Polymarket responded by stating that its market falls under event contracts regulated by the U.S. Commodity Futures Trading Commission and that it has acquired a company holding a license from the agency, with over 350 employees. Previously, New York State had sued competitor Kalshi in July for similar reasons.