New York State Sues Polymarket, Alleging It Operates an Unlicensed Gambling Business

According to Crowdfund Insider, New York Attorney General Letitia James and Governor Kathy Hochul have filed a civil lawsuit against QCX LLC, the operating entity behind Polymarket US, alleging that it ran an unlicensed gambling business by offering event contracts for sports, elections, and other occurrences to local users through prediction markets without authorization from the New York State Gaming Commission. The complaint also notes that the minimum age for mobile sports betting in New York is 21, whereas Polymarket allegedly permits users aged 18 to 20 to participate. New York seeks a court order to halt Polymarket’s related operations and advertising campaigns within the state, demanding the forfeiture of alleged illicit gains, compensation to users, and civil fines of up to three times the relevant earnings; for unauthorized sports betting activities, the state also mandates an additional $100,000 penalty for each instance of providing or attempting to provide such services. Polymarket Chief Legal Officer Neal Kumar stated that the company plans to contest the lawsuit. According to reports, Polymarket subsequently filed its own lawsuit, arguing that such event contracts fall under the exclusive regulatory authority of the U.S. Commodity Futures Trading Commission (CFTC).