New York has sued Polymarket, accusing the prediction market platform of running an unlicensed gambling operation and allowing users below the state\u2019s legal age for mobile sports betting to place wagers. Polymarket followed with a countersuit seeking to block state officials from regulating its platform.<\/p>\n
Attorney General Letitia James and Governor Kathy Hochul announced<\/a> the lawsuit on Thursday against QCX LLC, which operates as Polymarket US. James\u2019s office said the platform launched in the United States in December 2025 with sports betting and promised to expand to \u201cmarkets on everything.\u201d<\/p>\n The lawsuit argues that Polymarket\u2019s markets qualify as gambling because users wager money on outcomes that are uncertain, beyond their control or dependent on a game of chance. The company has not obtained a license from the New York State Gaming Commission, according to the attorney general\u2019s office.<\/p>\n Prosecutors also found that the platform allows users ages 18 to 20 to participate, while New York requires people to be at least 21 to place mobile sports bets. The state alleges that this exposes younger users to financial harm and problem gambling.<\/p>\n \tArticle continues below the player<\/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 The state also accuses Polymarket of avoiding taxes paid by licensed gambling businesses.<\/p>\n James is seeking a court order blocking Polymarket from operating as an unlicensed gambling business in New York, requiring it to forfeit gains from the alleged illegal activity and pay restitution to harmed consumers. The lawsuit also seeks fines equal to three times those gains.<\/p>\n