New York sues Polymarket for running an illegal gambling operation

New York Attorney General Letitia James and Governor Kathy Hochul filed a lawsuit against QCX LLC, doing business as Polymarket US, on Thursday. They allege the company operates an illegal gambling platform in the state. The filing seeks to halt Polymarket’s operations without a gambling license and to recover what the state calls illegal gains.

The complaint names QCX LLC as the specific entity behind the U.S. business. The New York State Governor’s office announcement confirms this fact. The state is asking a court to order the platform to forfeit those gains, provide restitution to customers, and pay fines equal to three times the alleged illegal profits.

A New York State press release stated: “Polymarket’s prediction markets are also available to users between the ages of 18-20, even though New York law requires a person to be at least 21 years old to participate in mobile sports betting.”

The suit was filed in the same month the state’s sports wagering market posted a record year. A Yahoo Sports report on 2025 betting volumes notes this continues a trend of growth that began in January 2022.

Prediction market companies contend their contracts are financial products under federal Commodity Futures Trading Commission jurisdiction rather than state-regulated bets. The state’s action asserts that sports-based contracts are effectively gambling.

Trading on the main polymarket.com site is blocked in the United States, according to the platform’s own site. That constraint does not apply to the U.S. entity now under litigation.