New York Attorney General Letitia James and Governor Kathy Hochul filed a lawsuit on Thursday against QCX LLC, which operates as Polymarket US. The complaint alleges that the prediction‑market platform runs an unlicensed gambling business in the state.
The suit seeks a court order barring Polymarket from operating without a gambling license, the forfeiture of gains the state deems illegal, restitution to affected customers and financial penalties equal to three times the alleged illicit profits.
Polymarket launched its U.S. service in December 2025, offering markets that let users wager on the outcomes of sporting events. The company said it intended to expand into additional market types. New York contends that such contracts constitute gambling under state law because participants bet money on uncertain outcomes. The complaint also notes that Polymarket permits users aged 18 to 20, whereas New York requires a minimum age of 21 for mobile sports betting.
A Polymarket spokesperson did not respond to requests for comment.
The case adds to an ongoing dispute over whether prediction markets fall under federal oversight by the Commodity Futures Trading Commission or are subject to state gambling regulations. Industry participants argue that their contracts are financial products regulated by the CFTC, while states, especially when sports are involved, treat them as bets.
New York has been active in this arena, having sued rival prediction‑market operator Kalshi in July after negotiations with the governor’s office collapsed. That suit seeks up to $36 billion in penalties and disgorgement, and related cases have reached appellate courts, including a recent Kalshi‑New Jersey dispute now before the U.S. Supreme Court.
James said the lawsuit reflects New York’s commitment to protect residents from problem gambling and to fund public‑benefit programs.
The litigation follows Polymarket’s re‑entry into the U.S. market less than a year ago.
