The New York Attorney General has filed a lawsuit against QCX LLC, the operator of the Polymarket US prediction platform. Authorities allege that the company conducts illegal gambling operations without the required license from the New York State Gaming Commission.
The state seeks a court order to halt the platform's operations within New York and demands the payment of fines and restitution. Attorney General Letitia James and Governor Kathy Hochul stated that the platform violates state law and poses risks to vulnerable residents.
Polymarket Chief Legal Officer Neal Kumar stated that the company intends to contest the lawsuit. He noted that the firm previously attempted to engage in direct discussions with the state regarding its regulatory concerns before the legal action was initiated.
This legal challenge follows similar actions taken by New York against other prediction market platforms, including Coinbase, Gemini Titan, and Kalshi. These companies were also accused of operating unlicensed gambling businesses in violation of state regulations.
The Commodity Futures Trading Commission has previously challenged New York's authority in this sector. The federal regulator filed a suit to assert its exclusive jurisdiction over event contracts, arguing that state gambling laws should not apply to federally regulated markets.
