New York Attorney General Letitia James and Governor Kathy Hochul announced a lawsuit on September 24 against QCX LLC, which does business as Polymarket US, alleging that it operates an illegal and unlicensed gambling platform in the state. The action puts Polymarket’s US operation at risk of being barred from operating in New York without a licence.
New York alleges Polymarket US took unlicensed wagers
According to the state’s petition, Polymarket accepted wagers from New Yorkers on sports, elections and cultural events without a licence from the New York State Gaming Commission. The allegations have not been adjudicated. The attorney general’s office announcement identifies the named defendant as QCX LLC, doing business as Polymarket US.
Petition seeks operating bar and penalties
New York is seeking permanent injunctive relief that would bar Polymarket from operating without a licence. The petition also seeks restitution, disgorgement and damages.
The requested monetary relief includes three times the company’s alleged gains. For sports wagering, the state is seeking a $100,000 penalty for each alleged unauthorised offer or attempt, creating exposure tied to the number of offers cited rather than a single fixed penalty.
The filing does not establish that such penalties will be imposed. It sets out the relief New York is asking a court to grant if its claims succeed.
Prediction-market jurisdiction dispute
Polymarket launched its US platform in December 2025, according to CoinDesk.
New York alleges that the platform operates unlicensed gambling activity and accepts wagers on sports, elections and cultural events. In its petition, the state says a New York State Gaming Commission licence is required.
The lawsuit adds to a broader jurisdictional dispute over whether prediction-market contracts should be regulated federally as financial products or under state gambling laws—a question with greater significance as platforms seek to offer event-based trading products in the US.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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