# New York Sues Polymarket as Platform Challenges State Gambling Authority

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/23964
Published: 2026-09-25T02:49:49.000Z
Updated: 2026-09-25T02:49:49.000Z

New York officials sued Polymarket US on Sept. 24, accusing the prediction-market platform of operating an unlicensed gambling business and escalating a broader fight over who regulates event contracts.

New York Attorney General Letitia James and Gov. Kathy Hochul said QCX LLC, which operates as Polymarket US, allows users to wager on sporting events and other uncertain outcomes without a state gambling license. The state also alleges that the platform permits users ages 18 to 20, below New York’s 21-year minimum for mobile sports betting.

The lawsuit seeks an order stopping the operation in New York, forfeiture of all proceeds tied to the alleged violations, restitution for affected users and penalties equal to three times the company’s gains. It also seeks $100,000 for each instance of offering or conducting sports or mobile sports betting in the state.

Polymarket responded the same day with a federal lawsuit in the Southern District of New York against James and the New York State Gaming Commission. The company argues that its event contracts are federally supervised derivatives and that Congress has barred states from enforcing gambling laws against them.

Polymarket US launched in the United States in December 2025. The dispute adds New York to a growing regulatory conflict between state gambling authorities and federally regulated prediction-market platforms.