New York Attorney General Letitia James and Governor Kathy Hochul have filed a lawsuit against QCX LLC, operating as Polymarket US, over allegations that the prediction market platform is running an unlicensed gambling operation.
According to the New York Attorney General's Office, the platform launched its US operations in December 2025 and offers wagers on sports and other events. The company is valued at more than $20 billion.
Allegations Against Polymarket
The lawsuit alleges that Polymarket's prediction markets constitute gambling under New York law, as users wager on uncertain outcomes beyond their control or dependent on chance. The state argues the company has not obtained a license from the New York State Gaming Commission, thereby evading taxes and regulatory obligations imposed on licensed casinos and mobile sports betting operators.
A key concern raised by New York officials involves age restrictions. The lawsuit alleges that Polymarket allows users between 18 and 20 years old to participate, despite New York law setting the minimum age for mobile sports betting at 21.
Financial and Public Impact
According to the complaint, gambling-related tax revenue helps fund public schools, youth sports programs, and problem gambling prevention and treatment initiatives. By operating without a license, the state argues Polymarket deprives New York families of these critical services and support.
Relief Sought
The lawsuit seeks a permanent halt to Polymarket's operations in New York, restitution to users, disgorgement of company gains, and fines equal to three times the gains made through allegedly illegal actions.
Attorney General James stated that the company is targeting vulnerable populations, while Governor Hochul emphasized that the platform puts New Yorkers at risk, particularly underage users most vulnerable to problem gambling.
