New York Sues Polymarket, Seeks Triple Profits and $100K Fines

On Sept. 24, New York Attorney General Letitia James filed a petition in state court against QCX LLC, which operates Polymarket US, alleging the company ran an unlicensed gambling business in New York. The filing seeks a permanent injunction, restitution for customers, disgorgement of profits equal to three times the gains the state attributes to the business, and $100,000 for each alleged unauthorized sports offering.

The petition asks the court to bar QCX from offering event contracts tied to sports, elections, culture and other events without a license from the New York State Gaming Commission. It also requests an accounting of customers and wagers and the return of customer losses. The attorney general’s office describes Polymarket’s products as contracts that pay out when specified future events occur and says those transactions constitute gambling because users risk money on outcomes they do not control.

Investigators point to marketing tied to the platform’s U.S. launch and promotions for sports markets. The petition quotes Polymarket advertising that introduced a U.S. app in December 2025 with the phrase “sports-followed by markets on everything” and statements claiming the product was “legal in all 50 states.” Earlier promotional material told users they could “TRADE EVERY FOOTBALL GAME IN ALL 50 STATES.” The filing says Polymarket offered markets linked to the New York Mets, college football games, the New York governor’s race and the television show Big Brother, and that the company repeatedly advertised to New York residents online and on social media.

New York requires mobile sports wagering operators to hold a state license; the petition alleges Polymarket lacks that license. The complaint also raises age-restriction concerns, noting Polymarket permits U.S. users aged 18 and over while New York law requires mobile sports bettors to be at least 21. The state asks the court to bar people under 21 from wagering on the contracts covered by the petition and contends unlicensed operators avoid safeguards, consumer protections and taxes imposed on licensed gaming companies.

The petition includes requests specific to sports wagering: $100,000 for each offering or attempt to offer unauthorized sports wagering or mobile sports wagering within or from New York. The filing does not specify how many offers might qualify for that fine.

The complaint also raises potential federal issues, alleging possible violations of the Wire Act through interstate transmission of sports wagers and related communications. QCX has been designated by the Commodity Futures Trading Commission as a contract market since July 2025, a status the petition notes while placing the state case in a broader dispute over how federal derivatives oversight interacts with state gambling laws.

The action follows earlier lawsuits by the attorney general against other platforms that offer event-based contracts. Earlier filings this year sought similar relief, including injunctions, restitution and penalties equal to three times alleged illegal profits.

Governor Kathy Hochul criticized the platform in a state statement, writing, “Calling it a ‘prediction market’ doesn’t change the facts. If you’re taking bets in New York, our gambling laws apply.” Attorney General James wrote, “By skirting New York’s laws, Polymarket is targeting the most vulnerable and depriving New York families of critical services and support.”

The petition seeks to apply state licensing, age and consumer-protection rules to the contracts named in the filing while also seeking monetary penalties and an accounting of activity and customers.