New York Attorney General Letitia James and Governor Kathy Hochul sued Polymarket\u2019s US arm on Thursday, alleging the prediction market has been running an illegal gambling operation in the state without a license.<\/p>\n
The suit targets QCX LLC, which does business as Polymarket US and launched in the United States in December 2025, letting users bet money on sporting events and other outcomes.<\/p>\n
The state argues<\/a> those markets meet New York\u2019s legal definition of gambling because their results are uncertain and outside the bettor\u2019s control, and says the company never obtained a license from the New York State Gaming Commission or paid the taxes licensed operators owe.<\/p>\n The complaint also says Polymarket lets users aged 18 to 20 trade, while New York requires mobile sports bettors to be at least 21.<\/p>\n James is asking the court to halt Polymarket\u2019s unlicensed gambling operations in New York, order it to forfeit all illegal gains and pay restitution to harmed users, and impose fines equal to three times those gains.<\/p>\n \u201cOur gambling laws exist to protect New Yorkers, prevent the potential harms of problem gambling, and ensure funding for educational and public benefit programs,\u201d James said.<\/p>\n Hochul said Polymarket had knowingly violated state law and put New Yorkers at risk, particularly underage users most vulnerable to problem gambling.<\/p>\n \u201cWe\u2019ll fight for our users,\u201d Polymarket Chief Legal Officer Neal Kumar said in a statement reported by the Associated Press.<\/p>\n Kumar added that the company started in a small New York City apartment, now employs more than 350 people in the city and intends to stay.<\/p>\n The case follows the state\u2019s lawsuit against Kalshi<\/a> in July, which made the same unlicensed gambling and underage access arguments and was filed in Manhattan state court. James sued Coinbase and Gemini in April over their prediction market products.<\/p>\n Likewise, Baltimore separately sued<\/a> both Kalshi and Polymarket on August 13, alleging they misled consumers about whether their products were legal and properly regulated.<\/p>\n The platforms argue that states have no authority over them because the Commodity Futures Trading Commission (CFTC) regulates them at the federal level. Kalshi has said its contracts are federally regulated derivatives, not gambling products subject to state gaming laws, and the CFTC has opposed state regulation of the sector.<\/p>\n The post New York Sues Polymarket Over Alleged Unlicensed Gambling and Underage Trading<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" New York Attorney General Letitia James and Governor Kathy Hochul sued Polymarket\u2019s US arm on Thursday, alleging the prediction market has been running an illegal gambling operation in the state without a license. The suit targets QCX LLC, which does business as Polymarket US and launched in the United States in December 2025, letting users […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-231980","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/231980"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=231980"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/231980\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=231980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=231980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=231980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Kalshi, Coinbase and Gemini Came First<\/h2>\n