New York sued the prediction market Polymarket on Thursday.

The state argues the platform is an unlicensed gambling operation.

It wants a judge to block Polymarket from operating in New York.

The lawsuit is the latest legal challenge from a state trying to rein in betting apps.

These apps let people wager on almost anything, including sports, weather, elections and technology.

New York officials filed the suit in state court.

They want Polymarket to face fines and pay restitution to users.

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

New York has sued other platforms, such as Kalshi, Coinbase and Gemini, using a similar argument.

Gov. Kathy Hochul said Polymarket knowingly violated state law and put New Yorkers at risk.

She said underage people are most vulnerable to problem gaming.

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

He said Polymarket was founded in a small New York City apartment.

It now has more than 350 employees in the state.

Prediction markets say states cannot govern them because they are regulated at the federal level.

They say they work differently from traditional gambling.

Consumers trade against other consumers, similar to stock markets.

The U.S. Commodity Futures Trading Commission has opposed state regulation of the platforms.

It did not immediately return a request for comment.