New York sues Polymarket, alleging it is running an illegal gambling operation
The state wants to block Polymarket from operating without a gambling license and recover allegedly illegal gains.
New York Attorney General Letitia James and Governor Kathy Hochul sued prediction market provider Polymarket’s U.S. business Thursday, alleging the platform is running an illegal gambling operation in the state.
The lawsuit, filed against QCX LLC, which does business as Polymarket US, asks a court to stop the company from operating in New York without a gambling license. The state also wants Polymarket to give up what it said are illegally earned gains, pay restitution to customers and face fines equal to three times those gains.
Polymarket launched its U.S. platform in December 2025 with markets that let users put money on the outcomes of sporting events. The company said at the time that it planned to expand into other types of markets.
The case adds to a growing fight between prediction markets and state gambling regulators over who has the authority to oversee the products.