According to CoinMeta, New York Attorney General Letitia James has filed a lawsuit against Polymarket, accusing them of operating an illegal gambling platform in the state. The lawsuit seeks a permanent ban on Polymarket from operating as an unlicensed gambling platform, requires them to give up all illegal profits, compensate affected users, and pay a fine equivalent to three times their total profits. Polymarket argues that their contracts are regulated by the federal Commodity Futures Trading Commission. The lawsuit, filed on September 24th, marks an intensified crackdown by New York State on prediction markets, following similar actions taken against their competitor Kalshi earlier on.