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New York sues Polymarket over unlicensed prediction market activity
The state asked a court to halt Polymarket US and seek restitution, disgorgement, and potentially substantial penalties, according to the lawsuit filing.
New York has sued Polymarket, accusing the platform of operating its US prediction market as an unlicensed gambling business across the state, CryptoSlate reports.
According to the lawsuit filed on Sept. 24 by Attorney General Letitia James, the action targets QCX LLC, which operates as Polymarket US, and asks the court to stop it from offering event contracts without a New York state gaming license.
The petition covers contracts tied to sports, elections, culture, and other events, and argues that the transactions meet New Yorks definition of gambling because customers risk money on outcomes outside their control.
The complaint also situates the case within a wider dispute over how federal derivatives oversight interacts with state gambling laws, noting that QCX has been a Commodity Futures Trading Commission designated contract market since July 2025.