New York Lawsuit Alleges Polymarket Runs Illegal Gambling Operation Without Required License
New York sued Polymarket US for unlicensed gambling after its December 2025 launch, citing no Gaming Commission approval, tax avoidance, and 18-20 user access where 21 is required. The suit demands cessation, forfeiture, restitution, and tripled fines. It follows identical actions against Kalshi, Coinbase, and Gemini.
SCCG Take — The filing treats prediction markets as regulated gambling, raising compliance barriers and enforcement risk for unlicensed operators nationwide.
New York Governor Kathy Hochul and Attorney General Letitia James filed suit against QCX LLC doing business as Polymarket US. The complaint accuses the prediction market platform of operating an unlicensed gambling business inside the state.
Polymarket launched in the United States in December 2025. Users can place bets on sporting events and other subjects. The New York Office of the Attorney General determined that these markets meet the legal definition of gambling: outcomes are uncertain, outside the bettor’s control, or dependent on chance. As reported by Yogonet International, the platform never obtained a license from the New York State Gaming Commission and therefore avoided taxes imposed on licensed casinos and mobile sports betting operators.
Allegations Center on Licensing Failures and Underage Access
The lawsuit states Polymarket permits users aged 18 to 20 to participate despite the state requirement of at least 21 for mobile sports betting. Officials seek a court order barring further unlicensed operations, forfeiture of alleged illegal gains, restitution to consumers, and fines equal to three times those gains.
Hochul declared: “Calling it a “prediction market” doesn’t change the facts. If you’re taking bets in New York, our gambling laws apply.” She added: “I will always stand up for New Yorkers when bad corporate actors prey on consumers and threaten tax dollars that fund schools and critical public services.” James noted the laws exist to protect consumers, curb problem gambling harms, and direct revenue toward education and public programs. The OAG emphasized that such tax funds support public schools, sports programs for underserved youth, and problem-gambling treatment.
This action follows the pair’s July 2026 suit against Kalshi and James’s April 2026 actions against Coinbase and Gemini on parallel unlicensed gambling claims.
Where the Risk Lies
Treating these platforms as outside gambling rules has not shielded them from enforcement in New York. The tripled-damages exposure and shutdown demand create immediate operational peril for any unlicensed entrant. Courts will now decide whether the “prediction” label alters the statutory analysis; until then, similar platforms must weigh licensing costs against the probability of successive state actions.
Reporting: Yogonet International
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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