New York sues Polymarket US over alleged illegal gambling

New York sued QCX LLC, which does business as Polymarket US, on September 24, seeking to stop it operating as an unlicensed gambling business in the state. The New York attorney general’s announcement says the office’s investigation found that the platform allows betting on sports and other events without a state gaming license. That puts Polymarket into a dispute already involving other prediction-market operators: New York sued Kalshi in July and Coinbase and Gemini in April, according to the state.

Why does New York say Polymarket needs a gambling license?

The state argues that the platform’s contracts fit New York’s legal definition of gambling because the events are uncertain, outside a bettor’s control, or depend on chance. The attorney general’s office says Polymarket launched its US service in December 2025, initially allowing users to bet on sports. It alleges the company did not obtain a license from the New York State Gaming Commission and avoided obligations, including taxes that licensed casinos and mobile sports-betting platforms pay.

Age is another part of the state’s case. The complaint alleges that people aged 18 to 20 can use Polymarket, while New York requires mobile sports bettors to be at least 21. These are allegations in a lawsuit, not a court ruling that Polymarket has violated state law.

What would the lawsuit change for Polymarket?

New York is asking a court to stop Polymarket from operating as an unlicensed gambling business in the state and to order it to forfeit alleged illegal gains, pay restitution to harmed consumers, and pay fines equal to three times those gains, the attorney general’s announcement says. The requested relief would reach beyond the platform’s availability to users: The Block reports that the state also seeks to stop its advertising in New York.

The comparison with licensed sportsbooks is central to the state’s argument. New York says gambling taxes support public schools, youth sports programs, and problem-gambling services. A license would bring Polymarket under state rules and tax obligations; the suit instead seeks to halt its business in the state while it remains unlicensed.

What will show whether the state can force a change?

The next signals are the court’s response to New York’s request and Polymarket’s position in the case. The Block reported that Polymarket Chief Legal Officer Neal Kumar said the company was staying in New York and had been working with officials to address concerns. He said it had more than 350 employees in the state. Whether that engagement changes the state’s position, or the case proceeds toward a ruling, remains unresolved.