New York Attorney General Letitia James and Gov. Kathy Hochul announced a lawsuit against Polymarket, alleging the prediction market platform is operating an illegal, unlicensed gambling operation in New York.
New York sues Polymarket
The lawsuit, filed against QCX LLC, doing business as Polymarket US, seeks to stop the company from operating an unlicensed gambling business in New York and requires it to pay fines, forfeit illegal gains and provide restitution to users, according to a news release from the governor's office.
Polymarket launched in the United States in December 2025 as a platform where users could bet money on the outcomes of sporting events and other events.
An investigation by the Attorney General's Office found that Polymarket's prediction markets meet
the state's legal definition of gambling because the outcomes are uncertain and outside the bettor's control or depend on chance, according to the lawsuit.
The state alleges Polymarket has not obtained a license from the New York State Gaming Commission, allowing it to avoid paying taxes and other requirements imposed on licensed gambling operators.
"By skirting New York's laws, Polymarket is targeting the most vulnerable and depriving New York families of critical services and support," James said in a news release.
Hochul said the company has "put New Yorkers at risk, especially those underage who are most vulnerable to problem gaming."
Polymarket allows users under 21, state alleges
The lawsuit also alleges Polymarket allows people ages 18 to 20 to use its prediction markets, despite New York's minimum age of 21 for mobile sports betting.
The Attorney General's Office said allowing younger users to participate in online gambling can expose them to financial and other risks.
What New York is seeking
James is asking a court to order Polymarket to:
- Stop operating as an unlicensed gambling business in New York
- Forfeit all gains from its alleged illegal activity
- Provide restitution to consumers who were harmed
- Pay fines equal to three times the gains made through the alleged violations
The lawsuit is the latest in a series of actions by James and Hochul targeting gambling and prediction-market platforms.
In July, James and Hochul announced a lawsuit against Kalshi, alleging the company operated an illegal gambling platform in New York.
James also sued Coinbase and Gemini in April, alleging the companies operated illegal gambling platforms.
New Yorkers can check whether gambling platforms are registered with the New York State Gaming Commission and report suspected misconduct or gaming fraud to the Attorney General's Office through its online complaint portal or by calling 1-800-771-7755.
This article originally appeared on Rochester Democrat and Chronicle: New York sues Polymarket, alleging illegal online gambling operation
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