New York State sues Polymarket, accusing it of operating illegal gambling business

PANews reported on September 25 that New York State Attorney General Letitia James and Governor Kathy Hochul sued the U.S. business unit of prediction market provider Polymarket on Thursday, accusing the platform of conducting illegal gambling activities in the state, Coindesk reported. The lawsuit, filed against QCX LLC, which operates as Polymarket US, asks the court to prohibit the company from operating in New York state without a gambling license. The state also requires Polymarket to turn over the alleged ill-gotten gains, reimburse customers and pay a fine equal to three times those ill-gotten gains. Polymarket launched its US platform in December 2025, offering a market that allows users to place bets on the outcome of sporting events.

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