New York sues Polymarket, alleging it is running an illegal gambling operation
Summary
New York Attorney General Letitia James and Governor Kathy Hochul sued Polymarket’s U.S. business, QCX LLC, alleging it offers unlicensed sports gambling. The state seeks to halt operations, recover alleged illegal gains, provide customer restitution and impose penalties. New York says the event contracts constitute gambling and that the platform permits users aged 18 to 20, below the state’s 21-year minimum for mobile sports betting. Polymarket argues prediction contracts are federally regulated financial products, while states contend sports markets must comply with gambling laws. The case adds to New York’s ongoing legal dispute with prediction market providers, including its lawsuit against Kalshi.
