The lawsuit is the latest legal challenge from a state moving to rein in popular and now-ubiquitous betting apps that allow people to place wagers on most anything, including sports, weather, elections and technology.

Prediction market platforms have argued states do not have the authority to govern them because they are regulated at the federal level by the U.S. Commodity Futures Trading Commission.

New York officials filed Thursday’s lawsuit against Polymarket in state court and want the company to face fines and be forced to pay restitution to users because the platform did not get a gaming license from the state. The state has previously sued other platforms such as Kalshi, Coinbase and Gemini using a similar argument.