Prediction Market Operator Sued by NY AG for Allegedly Running Unlicensed Gambling Business

A prediction market operator was sued by the New York Attorney General for allegedly running a gambling business in the state by offering wagers on sports, elections, and cultural events without a license from the New York State Gaming Commission.

In the petition, filed in the Supreme Court of the State of New York, the Attorney General alleged that the platform's markets meet the legal definition of gambling because outcomes are uncertain, are outside bettors' control, or hinge on chance. The Attorney General alleged that the operator avoided licensing obligations and the taxes paid by licensed casinos and mobile sports betting platforms, and allowed users as young as 18 to participate despite a state minimum gambling age of 21.

The Attorney General also alleged that the Gaming Commission previously issued a cease-and-desist demand to the company in October 2025 over the same unlicensed mobile wagering activity (see prior coverage).

The lawsuit seeks a court order barring the company from operating as an unlicensed gambling business in New York, along with forfeiture of illegal gains, restitution to affected consumers, and fines equal to three times the company's illicit proceeds.