New York sued the prediction market Polymarket on Thursday.

The state says the platform is an unlicensed gambling operation.

It wants a judge to block Polymarket in New York.

This is the latest legal challenge from a state.

The state wants to control betting apps.

These apps let people bet on many things.

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 want it to pay money back to users.

The state says the platform has no gaming license.

New York has sued other platforms.

These include Kalshi, Coinbase and Gemini.

The state uses a similar argument.

Gov. Kathy Hochul spoke.

She said Polymarket broke state law.

She said it put New Yorkers at risk.

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

Neal Kumar is Polymarket's Chief Legal Officer.

He 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 govern them.

They say the federal government regulates them.

They say they work differently from normal gambling.

They say consumers trade with other consumers.

This is like stock markets.

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

It did not answer a request for comment right away.