A prediction market valued at more than $20 billion is facing a New York lawsuit for allegedly running an unlicensed gambling platform that takes bets from users as young as 18.
Attorney General Letitia James and Governor Kathy Hochul filed the case against QCX LLC, doing business as Polymarket US, according to the New York Attorney General’s Office.
The company launched its US platform in December 2025 and offers wagers on sports and other events without a New York State Gaming Commission license.
The lawsuit alleges that Polymarket’s prediction markets qualify as gambling under New York law because users are wagering on uncertain outcomes that are beyond their control or depend on chance.
The lawsuit also alleges Polymarket has not obtained a license from the New York State Gaming Commission, allowing the platform to avoid the taxes and regulatory obligations imposed on licensed casinos and mobile sports betting operators. Gambling-related tax revenue helps fund public schools, youth sports programs and problem gambling prevention and treatment.
The lawsuit also alleges that Polymarket allows users between 18 and 20 years old to participate in its prediction markets, even though New York law sets the minimum age for mobile sports betting at 21.
“An investigation by the Office of the Attorney General (OAG) found that Polymarket’s prediction market is an illegal, unlicensed gambling operation that exposes New Yorkers – including those under the legal gambling age of 21 – to serious personal and financial risk.”
The suit seeks a permanent halt in the state, restitution to users, disgorgement of gains, and fines equal to three times the gains the company made through its illegal actions.
Attorney General James said the company is targeting the most vulnerable.
“Our gambling laws exist to protect New Yorkers, prevent the potential harms of problem gambling, and ensure funding for educational and public benefit programs. By skirting New York’s laws, Polymarket is targeting the most vulnerable and depriving New York families of critical services and support.”
Governor Kathy Hochul said Polymarket put New Yorkers at risk, especially underage users most vulnerable to problem gambling.
The Daily Hodl previously covered New York’s similar lawsuit against Kalshi, available here.
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