On Thursday, New York initiated legal action against prediction market Polymarket, asserting that the platform runs an unauthorized betting enterprise within the jurisdiction.
New York Attorney General Letitia James alongside Governor Kathy Hochul took legal action Thursday against the American branch of prediction market provider Polymarket, maintaining that the service operates an unlawful wagering facility in the jurisdiction.
The lawsuit was lodged against QCX LLC, operating commercially as Polymarket US, and petitions a court to bar the enterprise from conducting activities in New York absent a betting authorization. Furthermore, the state demands that Polymarket surrender allegedly unlawful profits, grant consumer compensation, and face financial penalties amounting to triple those revenues.
Polymarket rolled out its domestic marketplace back in December 2025 featuring contracts allowing participants to wager capital concerning athletic contest outcomes. At that time, the organization indicated plans to branch into additional market categories.
New York contended that these agreements constitute wagering under local legislation since participants risk funds on outcomes carrying unpredictable results. Additionally, the jurisdiction pointed out that Polymarket permits individuals aged 18 through 20 to access the network, whereas New York mandates a minimum age of 21 for participating in portable sports gambling.
An official representative for Polymarket did not promptly respond to an inquiry for a statement.
This dispute contributes to an expanding conflict between forecasting platforms and regional wagering watchdogs regarding jurisdiction over these assets.
Prediction platform firms maintain that event contracts function as financial instruments supervised nationally by the Commodity Futures Trading Commission (CFTC). Conversely, states maintain an alternative perspective, specifically when contracts center on athletics, asserting that these instruments constitute bets subject to local wagering regulations.
New York stands out as one of the most aggressive participants in this ongoing battle. The state brought a lawsuit against Kalshi during July following the collapse of discussions between the enterprise and Hochul’s administration, seeking up to $36 billion in monetary penalties and forfeiture. A significant portion of these judicial proceedings has advanced to appellate courts, while a recent dispute involving Kalshi and New Jersey has reached the Supreme Court of the United States.
“Our gambling laws exist to protect New Yorkers, prevent the potential harms of problem gambling, and ensure funding for educational and public benefit programs,” James remarked via a published declaration.
This legal filing arrives less than twelve months after Polymarket re-entered the domestic United States sector.
Originally published at https://www.coindesk.com/policy/2026/09/24/new-york-sues-polymarket-alleging-it-is-running-an-illegal-gambling-operation.
