New York sued the prediction market Polymarket on Thursday.

The state says the platform is an unlicensed gambling business.

It wants a judge to stop Polymarket from working in New York.

This is the newest legal challenge from a state.

The state wants to control betting apps.

These apps let people bet on almost anything.

They can bet on sports, weather, elections and technology.

New York officials filed the suit in state court.

They want Polymarket to pay fines.

They also want it to pay money back to users.

The state says the platform did not get a gaming license.

New York has sued other platforms too.

These include Kalshi, Coinbase and Gemini.

The state used a similar argument.

Gov. Kathy Hochul said Polymarket broke state law on purpose.

She said it put New Yorkers in danger.

She said young people are most at risk from problem gaming.

Polymarket's Chief Legal Officer Neal Kumar said the company will fight for its users.

He said Polymarket started in a small apartment in New York City.

He said it now has more than 350 workers in the state.

Prediction markets say states cannot control them.

They say the federal government controls them.

They say they work differently from normal gambling.

They say consumers trade with other consumers.

They say it is similar to stock markets.

The U.S. Commodity Futures Trading Commission has opposed state rules for the platforms.

It did not immediately answer a request for comment.