- New York seeks to block Polymarket US from operating without a state gaming license.
- The petition requests restitution and $100,000 per alleged unauthorized sports wagering offer.
- Polymarket vows to stay as the CFTC contests state oversight of event markets.
New York Attorney General Letitia James filed a Polymarket lawsuit Thursday, alleging the platform runs an unlicensed gambling business. The petition seeks an order blocking its New York operations and advertising without a gaming license, alongside restitution and penalties. The case adds to a wider dispute over whether federal oversight of event contracts displaces state gambling laws.
Polymarket Lawsuit Targets Sports Contracts and Licensing
The Polymarket lawsuit names QCX LLC, which operates Polymarket US, and focuses on sports event contracts. New York argues the contracts are wagers because users risk money on results they cannot control.
Officials say the firm lacks a New York State Gaming Commission license. The filing cites promotions involving professional and college teams in the state.
The complaint says people aged 18 to 20 can use the platform. New York requires mobile sports bettors to be at least 21. Governor Kathy Hochul warned that younger users face particular risks.
The attorney general also says unlicensed operations avoid taxes that help fund schools, youth sports and problem gambling services.
New York seeks a permanent injunction, an accounting of wagers, restitution and forfeiture of alleged gains. The Polymarket lawsuit requests a $100,000 penalty for each unauthorized sports wagering offer. It also asks for a separate penalty equal to three times the alleged gains. Neither penalty has been imposed.
CFTC Authority Clash Deepens New York Gambling Dispute
Polymarket Chief Legal Officer Neal Kumar said the firm would defend its users. He said Polymarket has more than 350 employees in New York and plans to stay. Kumar pointed to its New York origins in defending the company’s presence. Polymarket has not been found liable in this proceeding.
The Polymarket lawsuit follows New York’s July case against Kalshi and April actions against Coinbase and Gemini. The Commodity Futures Trading Commission argues that federally registered event markets fall under its exclusive jurisdiction.
In April, the agency sued New York to stop state gambling enforcement against registered exchanges. That federal suit requests an injunction barring enforcement of state rules against those markets.
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