New York officials have filed a major lawsuit against QCX LLC, the operator of Polymarket US, accusing the company of running an illegal gambling business. The legal action, brought jointly by New York Governor Kathy Hochul and Attorney General Letitia James, claims that Polymarket has been operating an unlicensed sports betting and event prediction service across the state since launching its domestic platform in December 2025.
Following an extensive investigation, the Office of the Attorney General determined that the event contracts offered by Polymarket meet the legal definition of gambling under state law because the wagering outcomes depend on chance and remain outside the control of the participants. According to the complaint, Polymarket failed to apply for or secure the required license from the New York State Gaming Commission. By operating without state authorization, the company allegedly avoided state tax obligations that apply to licensed sports betting platforms and traditional casinos. State leaders highlighted that these missing tax funds are designated to support public education, youth athletic programs, and state-funded problem gambling treatment services.
The lawsuit further alleges that Polymarket permitted individuals aged 18 to 20 to participate in betting activities on its platform. New York state regulations strictly require participants to be at least 21 years old for mobile sports wagering. Authorities contend that allowing younger individuals to place wagers created unnecessary risks for vulnerable users who are more susceptible to gambling problems.
Governor Hochul stated that operating without a license knowingly violates state laws intended to protect residents. Attorney General James emphasized that calling a platform a prediction market does not exempt an operator from state oversight and regulatory compliance. The legal filing seeks a court order prohibiting Polymarket from offering its services in New York, along with the forfeiture of alleged illegal revenues, full restitution for impacted consumers, and financial penalties equal to three times the total financial gains derived from the unlicensed operations.
This complaint represents the latest enforcement push by New York authorities targeting unlicensed prediction platforms, following similar legal actions launched against competitors earlier in the year as regulators seek to enforce strict compliance across the growing market.