New York Attorney General Letitia James has sued Polymarket, accusing the prediction-market platform of operating an illegal and unlicensed gambling business in the state. The lawsuit marks another escalation in New York's growing fight against prediction markets, as officials argue that contracts allowing users to wager on real-world events amount to gambling under state law.
The lawsuit was announced on 24 September by James and Governor Kathy Hochul against QCX LLC, which operates as Polymarket US. New York's Attorney General's Office said its investigation concluded that Polymarket's prediction markets meet the state's legal definition of gambling because users are wagering on uncertain events outside their control or on outcomes involving chance.
