New York officials have opened a new front in their campaign against prediction-market platforms, accusing Polymarket’s US operation of conducting unlicensed wagering inside the state.
On September 24, 2026, Attorney General Letitia James and Governor Kathy Hochul announced a civil action against QCX LLC, which does business as Polymarket US.
The complaint, filed in New York County court under Executive Law § 63(12), portrays the company’s event contracts as ordinary gambling dressed up as financial products.
Polymarket’s American app debuted in December 2025 with a clear pitch: sports first, then “markets on everything.”
Users could put money on the results of games, elections, and other uncertain events.
New York investigators concluded that those contracts meet the state’s definition of gambling because the outcomes are outside any bettor’s control and often depend on chance.
The company never obtained a license from the New York State Gaming Commission, the complaint says, and therefore avoided the taxes and consumer protection rules that apply to licensed casinos and mobile sportsbooks.
Officials also object to the platform’s age rules. New York sets the minimum age for mobile sports betting at 21.
Polymarket, they allege, has accepted users as young as 18. State health data cited in the case describe 18- to 24-year-olds as a high-risk group for gambling harm.
James argued that the company is “targeting the most vulnerable and depriving New York families of critical services and support,” because licensed operators help fund education and problem-gambling programs.
Hochul added that an unlicensed operation puts New Yorkers, especially younger ones, at unnecessary personal and financial risk.
The petition seeks a court order that would halt Polymarket’s unlicensed activity in the state, including advertising.
It also asks for forfeiture of alleged illegal profits, restitution to customers, and civil penalties of three times those profits.
For unauthorized sports wagering, the state is requesting an additional $100,000 for each offer or attempt.
Officials further want a full accounting of trades, user losses, and company revenue.
The case is part of a wider New York campaign. Similar actions were filed against rival Kalshi in July and earlier against Coinbase and Gemini over comparable event-contract products.
Prediction market operators generally argue that they are regulated at the federal level by the Commodity Futures Trading Commission and that state gambling statutes are preempted.
Polymarket’s chief legal officer, Neal Kumar, said the company was founded in New York, employs hundreds of people there, and intends to stay and contest the suit, which he described as a recycled filing.
Hours after the state action, the company reportedly filed its own complaint asserting exclusive CFTC jurisdiction.
The dispute sits inside a national conflict.
Several states treat these contracts as illegal sports books. Federal courts have split on whether CFTC registration blocks state enforcement, and the Supreme Court has been asked to resolve the question. For now, New York is pressing its own view: if a platform takes bets from the public on uncertain events, it must follow state gambling law.
