On September 24 local time, New York Attorney General Letitia James and Governor Kathy Hochul announced a lawsuit against the U.S. business of prediction-market platform Polymarket. The defendant is QCX LLC, which operates Polymarket US. New York alleges that the company conducted gambling operations without a license under state law.
New York argues that wagering money on the outcome of uncertain events beyond a user's control constitutes gambling under state law. It also alleges that by operating without a license from the New York State Gaming Commission, the company avoided taxes paid by licensed casinos and mobile sports-betting operators. State law sets the minimum age for mobile sports betting at 21, but New York says Polymarket US also served users aged 18 to 20.
The state asked the court to stop the unlicensed operations and order disgorgement and restitution to users. It also seeks monetary penalties equal to three times the profits it says were earned through illegal operations, along with a $100,000 penalty for each act of offering or attempting to offer sports-betting services without authorization.
Polymarket US began operating in the United States in December 2025. Its operating company, QCX, is an exchange supervised by the U.S. Commodity Futures Trading Commission. The central dispute is whether New York gambling law can also apply to transactions conducted under federal oversight.
On the same day, Polymarket filed a separate lawsuit in federal court against Attorney General James and officials of the New York State Gaming Commission. The company argues that its transactions fall under the CFTC's exclusive jurisdiction under the Commodity Exchange Act and therefore are not subject to New York gambling rules. It asked the court to declare that the relevant state laws are preempted and to issue preliminary and permanent injunctions blocking state enforcement.
New York filed a similar lawsuit against prediction-market rival Kalshi in July and brought related actions against Coinbase and Gemini in April. The announcements and complaints establish the parties' allegations and requested relief, but no court ruling has determined illegality or whether operations must cease.