New York Attorney General Letitia James and Governor Kathy Hochul have sued Polymarket's US arm, accusing the prediction market platform of operating an illegal gambling operation without a license. The lawsuit targets QCX LLC, which does business as Polymarket US and launched in the United States in December 2025, letting users bet on sporting events and other outcomes.
State officials argue that Polymarket's contracts meet New York's legal definition of gambling because their results are uncertain and outside the bettor's control. The complaint says the company never obtained a license from the New York State Gaming Commission and did not pay taxes that licensed gambling operators owe. New York also alleges Polymarket allows users aged 18 to 20 to trade, while the state requires mobile sports bettors to be at least 21.
The state is asking a court to halt Polymarket's unlicensed gambling operations in New York, order it to forfeit illegal gains and pay restitution to harmed users, and impose fines equal to three times those gains. New York also wants the platform permanently blocked from doing business or advertising in the state until it properly registers, including a $100,000 payment among other fines.
Polymarket Chief Legal Officer Neal Kumar said the company is staying in New York and intends to fight. He noted that Polymarket was founded in a small New York City apartment and now employs more than 350 people in the city. The case follows similar actions against Kalshi in July, as well as earlier lawsuits against Coinbase and Gemini over their prediction market products. Baltimore separately sued both Kalshi and Polymarket in August, while the platforms argue they are federally regulated by the Commodity Futures Trading Commission and not subject to state gaming laws.
