- Polymarket was sued by New York for allegedly engaging in unlicensed gaming.
- Polymarket allegedly marketed sports contracts without a state gaming license, according to officials.
- Access for users between the ages of 18 and 20 is also contested in the complaint.
- Polymarket intends to defend itself in court and refutes the accusations.
New York Attorney General Letitia James and Governor Kathy Hochul have filed a lawsuit against Polymarket’s U.S. Operator, QCX LLC. The lawsuit, filed on September 24, says that Polymarket offered sports and other event contracts without a state gambling license.
.@Polymarket is skirting New York’s laws by running an illegal gambling platform that targets our most vulnerable and deprives families of critical services.
⁰My office and @GovKathyHochul are suing to defend our laws and keep New Yorkers safe.— NY AG James (@NewYorkStateAG) September 24, 2026
This case places Polymarket at the heart of a growing debate about whether prediction markets should be treated as financial derivatives or gambling products under state law.
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
New York Challenges Polymarket’s Sports Contracts
According to the complaint, Polymarket allowed users to put money on sporting events and other uncertain outcomes without authorization from the New York State Gaming Commission.
Because consumers risked money on uncontrollable circumstances, state officials contend that these contracts qualify as gambling. In addition to requesting compensation, civil penalties, confiscation of disputed revenues, and other remedies, New York is asking the court to prevent Polymarket from carrying out the alleged behavior.
The court has not proven the charges.
“ Our gambling laws exist to protect New Yorkers, prevent the potential harms of problem gambling, and ensure funding for educational and public benefit programs,” James said.
Polymarket Pushes Back Against Lawsuit
Polymarket has rejected New York’s allegations and said it intends to defend itself in court.
Neal Kumar, the company’s chief legal officer, said Polymarket was disappointed by the lawsuit and argued that the company had been engaging with state officials directly over its operations.
He also emphasized the company’s New York presence, saying Polymarket was founded in New York and now employs more than 350 people there. The company has argued that its prediction markets provide transparent event-based contracts rather than traditional sports betting.
User Age Becomes Another Flashpoint
New York’s complaint also raises concerns about Polymarket’s age requirements. The state requires users to be at least 21 to participate in mobile sports betting. Officials allege that Polymarket’s markets were accessible to users between 18 and 20.
The state says this creates additional consumer-protection concerns and points to age-verification and responsible-gambling requirements imposed on licensed operators.
Polymarket Faces Wider Regulatory Fight
The New York case follows similar legal challenges involving prediction market platforms. James and Hochul filed a lawsuit against Kalshi in July regarding contracts pertaining to sports, claiming that they were unlawful gambling under New York law.
Additionally, Polymarket is being sued in Kentucky, where authorities claim that QCX ran an online sportsbook without permission from the state.
The broader dispute centers on regulatory jurisdiction. Prediction market operators generally argue that their contracts are derivatives overseen by the Commodity Futures Trading Commission (CFTC), while several states contend that sports-related contracts fall under state gambling laws.
Stay informed with the latest trends in Web3, blockchain innovation, and cybersecurity updates at 3verseTV
You need to login in order to Like
Leave a comment