New York has sued QCX LLC, which does business as Polymarket US, alleging that its prediction-market platform operated an unlicensed gambling business in the state. The action, announced by Attorney General Letitia James and Gov. Kathy Hochul on Sept. 24, seeks to permanently bar the company from offering gambling in New York without a state Gaming Commission licence.
The state’s petition says Polymarket accepted wagers from New Yorkers through websites and mobile applications, describing them as event contracts. It alleges the contracts meet the state’s definition of gambling because users stake money on uncertain outcomes that they cannot control, including sports and other events.
QCX was not licensed by the New York State Gaming Commission in any capacity, according to the petition. New York alleges violations of the state Constitution, Penal Law and Racing Law, as well as the federal Interstate Wire Act.
The state is seeking an accounting of bets, customer losses and money paid to Polymarket, along with restitution, disgorgement, damages, penalties and costs. It also seeks a $100,000 penalty for each alleged unauthorised offer or attempted offer of sports wagering or mobile sports wagering in New York.
The petition says Polymarket marketed its U.S. mobile application in December 2025 as “launching with sports” before expanding to “markets on everything.” It alleges the platform advertised itself as legal in all 50 states, promoted sports betting to New York residents online and offered contracts tied to subjects including the New York Knicks, state gubernatorial elections and Big Brother Season 28.
The lawsuit also alleges that Polymarket made markets available to users aged 18 to 20. New York law treats people under 21 as minors for sports-wagering purposes and prohibits them from participating in sports wagering.
James said Polymarket had deprived New York families of services and support by evading the state’s laws. The attorney general’s office noted that tax revenue from regulated gambling supports public schools, youth sports programmes and problem-gambling education and treatment.
Polymarket has challenged the state separately in federal court, filing suit against James and the Gaming Commission after New York’s action. The company argues that its event contracts are federally regulated derivatives and that states cannot regulate them as gambling. Neal Kumar, Polymarket’s chief legal officer, said the company would fight for its users.
The dispute reflects a broader clash between state gambling regulators and prediction-market operators over whether event contracts are financial products or wagers. Prediction-market platforms say users trade against one another at market-set prices, rather than betting against a house that sets odds.
The action follows New York’s July lawsuit against rival platform Kalshi, as we reported. Kumar said Polymarket was founded in New York City, employs more than 350 people in the state and intends to remain there.
