New York’s Polymarket Fight Tests Sports Betting Taxes

New York has moved to sue Polymarket as prediction markets offer sports contracts outside the state’s sportsbook tax framework, raising questions about a gambling-tax base worth more than $1 billion a year. The platforms argue that they operate as federally overseen derivatives exchanges, not under state gambling laws, a dispute that could shape where sports-related wagering is taxed. The conflict puts a large revenue stream in focus.