New York Sues Polymarket Over Alleged Unlicensed Gambling and Underage Trading
New York Attorney General Letitia James and Governor Kathy Hochul sued Polymarket’s US arm on Thursday, alleging the prediction market has been operating an unlawful playing operation within the state and not using a license.
The swimsuit targets QCX LLC, which does enterprise as Polymarket US and launched within the United States in December 2025, letting customers wager cash on sporting occasions and different outcomes.
Triple Fines and Restitution Sought
The state argues these markets meet New York’s authorized definition of playing as a result of their outcomes are unsure and exterior the bettor’s management, and says the corporate by no means obtained a license from the New York State Gaming Commission or paid the taxes licensed operators owe.
The criticism additionally says Polymarket lets customers aged 18 to twenty commerce, whereas New York requires cellular sports activities bettors to be at the very least 21.
James is asking the court docket to halt Polymarket’s unlicensed playing operations in New York, order it to forfeit all unlawful beneficial properties and pay restitution to harmed customers, and impose fines equal to a few instances these beneficial properties.
“Our playing legal guidelines exist to guard New Yorkers, stop the potential harms of downside playing, and guarantee funding for academic and public profit packages,” James stated.
Hochul stated Polymarket had knowingly violated state legislation and put New Yorkers in danger, significantly underage customers most susceptible to downside playing.
“We’ll battle for our customers,” Polymarket Chief Legal Officer Neal Kumar stated in a press release reported by the Associated Press.
Kumar added that the corporate began in a small New York City house, now employs greater than 350 folks within the metropolis and intends to remain.
Kalshi, Coinbase and Gemini Came First
The case follows the state’s lawsuit against Kalshi in July, which made the identical unlicensed playing and underage entry arguments and was filed in Manhattan state court docket. James sued Coinbase and Gemini in April over their prediction market merchandise.
Likewise, Baltimore individually sued each Kalshi and Polymarket on August 13, alleging they misled customers about whether or not their merchandise had been authorized and correctly regulated.
The platforms argue that states haven’t any authority over them as a result of the Commodity Futures Trading Commission (CFTC) regulates them on the federal stage. Kalshi has stated its contracts are federally regulated derivatives, not playing merchandise topic to state gaming legal guidelines, and the CFTC has opposed state regulation of the sector.
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