New York has sued prediction market platform Polymarket, accusing it of running an illegal, unlicensed gambling operation in the state.
Attorney General Letitia James and Governor Kathy Hochul announced the lawsuit on September 24. It was filed against QCX LLC, which trades as Polymarket US, in the New York Supreme Court in Manhattan.
The state says Polymarket has no valid license and pays no state taxes, unlike licensed casinos and mobile sportsbooks. The suit also claims the platform is marketed to users aged 18 to 20, even though New York requires mobile sports bettors to be at least 21.
New York wants fines equal to three times Polymarket’s gains, forfeiture of alleged illegal profits, and restitution for users who lost money. It also seeks $100,000 for each offer of unauthorized sports wagering.
The case follows a similar lawsuit against rival Kalshi filed on July 31. Polymarket, which returned to the US market in December 2025, said it was disappointed. “They preferred the media hit,” said chief legal officer Neal Kumar.