New York Attorney General Letitia James has sued Polymarket US, alleging its prediction-market platform operates as an unlicensed gambling business in the state. The lawsuit asks a court to stop the company from offering the disputed wagers in New York and to order financial penalties and restitution.
James and Gov. Kathy Hochul announced the case against QCX LLC, which does business as Polymarket US, on Sept. 24. Their claims have not been decided by a court, and the state announcement did not include a response from Polymarket.
State challenges the platform's legal status
The attorney general's office says Polymarket launched its U.S. service in December 2025 with contracts tied to sports outcomes and plans to expand to other subjects. The state argues those contracts are bets on uncertain events outside the user's control and therefore fall under New York gambling law.
The lawsuit alleges that Polymarket has not obtained a license from the New York State Gaming Commission. State officials contend that, as an unlicensed operator, it has not paid taxes required of licensed casinos and mobile sports-betting platforms. They say gambling tax revenue supports schools, youth sports and problem-gambling services.
The state also says the platform is available to users ages 18 to 20, while New York requires mobile sports bettors to be at least 21. That is one of the consumer-protection concerns officials raised, alongside the financial risks they associate with online betting. The release did not provide a count of underage New York users or quantify alleged tax losses.
Hochul said the state views licensing as a safeguard for consumers and a source of public funding. James said her office's investigation led it to conclude the platform violated state rules. Both described their positions in announcing the case; neither statement is a court finding.
What the state wants from court
James is seeking an order that would bar unlicensed operations in New York and require the company to forfeit gains the state says were obtained illegally. The lawsuit also asks for restitution for affected users and fines equal to three times the company's alleged gains.
The filing is part of a broader state effort to challenge some prediction-market and sweepstakes platforms. James and Hochul announced a separate lawsuit against Kalshi in July, while the attorney general's office says it secured an $8 million settlement from a sweepstakes-casino operator earlier this month. Those are separate matters, not findings in the Polymarket case.
The attorney general's office has also brought cases against Coinbase and Gemini over platforms it describes as illegal gambling operations, and against the video-game company Valve over gambling promotions. Hochul signed an executive order in April barring state employees from insider trading through prediction markets. The outcomes of those separate actions do not establish the claims in this lawsuit.
James and Hochul urged New Yorkers to check whether a gambling platform is registered with the Gaming Commission. The attorney general's office says residents can report suspected gaming fraud through its online complaint system or by calling 1-800-771-7755.
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