New York challenges Polymarket’s US operation in gambling lawsuit
The state alleges Polymarket US is taking wagers without a gaming licence and asks a court to halt its operation. The company says it will fight the case.
New York has sued QCX LLC, known as Polymarket US, alleging the company operates an unlicensed gambling business through its prediction market. The state filed the case in New York County court and is seeking an order to stop the operation, fines, forfeiture of alleged illegal gains and restitution for users.
New York alleges the platform accepts wagers without a state gaming licence, allows people aged 18 to 20 to participate in mobile sports betting, and avoids taxes paid by licensed gambling operators. Those claims have not been adjudicated.
Polymarket said it would fight the lawsuit, describing it as a recycled case and saying it remains committed to New York. The company said it had engaged with the state over its concerns.
The case adds to a dispute over whether sports event contracts offered by prediction markets are gambling under state law or financial swaps subject to federal oversight. The Commodity Futures Trading Commission asserts exclusive jurisdiction over the platforms; states and courts have taken differing positions.
Polymarket’s main exchange has been unavailable to US users since a 2022 CFTC ruling. A more limited mobile app launched in December 2025 after the company acquired QCX, a CFTC-licensed firm.
