New York sues Polymarket over alleged illegal gambling

New York Attorney General Letitia James and Governor Kathy Hochul announced a lawsuit against Polymarket on Sept. 24, seeking to stop the prediction market from operating in the state as an unlicensed gambling business. The New York attorney general’s announcement names QCX LLC, doing business as Polymarket US, as the defendant.

The lawsuit alleges that Polymarket’s event contracts amount to gambling under state law because their outcomes are uncertain, outside a bettor’s control or depend on chance. James and Hochul say the company has not obtained a license from the New York State Gaming Commission.

What does New York want the court to order?

The state is asking for an order stopping Polymarket from operating as an unlicensed gambling business in New York. It also seeks forfeiture of alleged illegal gains, restitution for users and fines equal to three times the gains the company made through the alleged violations, according to the attorney general’s announcement.

New York argues that unlicensed operators avoid taxes paid by licensed casinos and mobile sports betting platforms. The state says gambling tax revenue supports public schools, sports programs for underserved young people, and problem-gambling education and treatment.

What does the state allege about younger users?

The attorney general’s office says Polymarket’s markets are available to users aged 18 to 20, while New York requires users to be at least 21 to take part in mobile sports betting. James and Hochul argue that access exposes underage users to gambling risks and that licensing rules are meant to protect consumers.

Those are allegations in the state’s case; the announcement does not establish that a court has ruled on them. The state also says Polymarket launched its US service in December 2025, offering bets on sporting events before plans to add markets on other subjects.

How has Polymarket responded, and what comes next?

Polymarket chief legal officer Neal Kumar said the company had been working with New York officials to address concerns and intended to remain in the state, The Block reported. Kumar said Polymarket has more than 350 employees in New York.

The lawsuit now asks a court to decide whether the platform must stop operating in New York and pay the requested amounts. The state’s announcement and The Block’s report do not specify a hearing date or say when the court will rule.