TLDR New York sued Polymarket on September 24, claiming it runs an unlicensed gambling business in the state. The state wants penalties equal to three times Polymarket’s gains, plus $100,000 for each unauthorized sports wagering offer. New York says Polymarket allows users aged 18 and older, while state law requires mobile sports bettors to be 21. The lawsuit follows earlier New York cases against Coinbase Financial Markets, Gemini Titan and Kalshi. Federal courts are split on state versus federal authority, and petitions are now before the Supreme Court.
New York has filed a lawsuit against prediction market Polymarket. The state claims the company runs an illegal gambling business without a license.
Attorney General Letitia James and Governor Kathy Hochul filed the complaint on September 24. It targets QCX LLC, the company that operates Polymarket US.
The state wants a court to stop Polymarket from offering event contracts without a state gaming license. The request covers contracts tied to sports, elections, culture and other events.
What New York Is Asking For
New York is seeking a permanent injunction, restitution for customers and the return of any illegal profits. It also wants a penalty equal to three times the company’s gains.
The state is asking for $100,000 for each offer of unauthorized sports wagering. The filing does not say how many offers could count toward that total.
New York also wants Polymarket to provide an accounting of its customers, bets placed and customer losses.
Why the State Calls It Gambling
New York argues that users risk money on events outside their control. The state says that meets its legal definition of gambling.
“Calling it a ‘prediction market’ doesn’t change the facts. If you’re taking bets in New York, our gambling laws apply,” Hochul said.
The complaint says Polymarket launched