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- New York Attorney General Letitia James sued Polymarket US on Sept. 24 for operating an illegal, unlicensed gambling business.
- The state seeks a court order blocking Polymarket without a gaming license, plus restitution and financial penalties.
- Polymarket disputes the claims, stating its event contracts are federally regulated derivatives rather than state-regulated gambling products.
New York Attorney General Letitia James has sued Polymarket US, alleging the prediction-market platform operates an illegal, unlicensed gambling business in the state. New York is seeking an order blocking the company from operating without a gaming license, along with restitution and financial penalties. The case was filed on Sept. 24 against QCX LLC, which operates as Polymarket US.
New York Says Event Contracts Are Gambling
The petition argues that Polymarket’s event contracts qualify as gambling under New York law because users risk money on uncertain future events. New York alleges the platform offered contracts tied to sports, elections and other events without a license from the New York State Gaming Commission. Attorney General James said the state’s gambling rules are intended to protect consumers.
“Our gambling laws exist to protect New Yorkers, prevent the potential harms of problem gambling, and ensure funding for educational and public benefit programs.”
State Challenges Access for Users Under 21
The complaint also focuses on Polymarket’s age requirements. It alleges the platform allows users who are at least 18 to open accounts and trade event contracts.
New York requires customers to be at least 21 to participate in mobile sports betting. The state argues Polymarket therefore allows sports-related activity by users who could not access licensed sportsbooks.
Lawsuit Seeks Penalties and Restitution
New York wants the court to stop Polymarket from offering what it considers unlicensed gambling. The petition also seeks restitution, disgorgement, and damages. It requests $100,000 for each unauthorized sports-wagering offer or attempted offer in the state.
Polymarket Disputes State’s Characterization
Polymarket says its event contracts are federally regulated derivatives rather than state-regulated gambling products. QCX LLC has been registered with the Commodity Futures Trading Commission as a designated contract market since July 9, 2025. The case adds to the dispute over how state gambling laws apply to federally regulated prediction markets.
