New York Governor Kathy Hochul and Attorney General Letitia James have filed a lawsuit against QCX LLC, doing business as Polymarket US, accusing the prediction market operator of running an illegal, unlicensed gambling business in the state.
Polymarket launched in the United States in December 2025, allowing users to bet on the outcomes of sporting events and other subjects. The New York Office of the Attorney General (OAG) said an investigation found that the platform’s prediction markets meet the legal definition of gambling because the outcomes are uncertain and outside bettors’ control or depend on chance.
The lawsuit alleges Polymarket failed to obtain a license from the New York State Gaming Commission, allowing it to avoid taxes applicable to licensed casinos and mobile sports betting platforms.
New York officials also allege that Polymarket allows users aged 18 to 20 to participate, despite state law requiring people to be at least 21 to take part in mobile sports betting.
The lawsuit seeks a court order stopping Polymarket from operating as an unlicensed gambling business, as well as the forfeiture of alleged illegal gains, restitution for affected consumers and fines equal to three times the gains made through the alleged illegal activity.
Calling it a “prediction market” doesn’t change the facts. If you’re taking bets in New York, our gambling laws apply. Today, @NewYorkStateAG and I sued Polymarket for running an illegal gambling operation and preying on vulnerable New Yorkers.
— Governor Kathy Hochul (@GovKathyHochul) September 24, 2026
“I will always stand up for New Yorkers when bad corporate actors prey on consumers and threaten tax dollars that fund schools and critical public services,” Hochul said.
“By running an unlicensed gambling operation, Polymarket has done more than just knowingly violate state law; they have put New Yorkers at risk, especially those underage who are most vulnerable to problem gaming. Nobody is above the law in our state, and working with Attorney General James, we are fighting to protect New Yorkers and put this illegal operation to an end,” Hochul added.
James said New York’s gambling laws are intended to protect consumers, prevent the potential harms of problem gambling and ensure funding for educational and public benefit programs.
The OAG noted gambling tax revenue supports public schools, sports programs for underserved youth, and problem-gambling education and treatment.
The lawsuit is the latest gambling-related enforcement action by Hochul and James. The pair sued Kalshi in July 2026 over allegations of operating an illegal gambling platform, while James sued Coinbase and Gemini in April 2026 over similar allegations.