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N.Y. SUP. CT.Litigation

New York sues Polymarket alleging unlicensed gambling while company countersues in federal court

By LexCircuit Desk · · AI-drafted, human-reviewed

New York Attorney General Letitia James and Governor Kathy Hochul filed an enforcement petition in Manhattan state court on Thursday against QCX LLC, operating as Polymarket US, alleging the prediction market ran an unlicensed gambling business that offered sports event wagers to individuals under twenty-one. Polymarket countersued James and state gaming officials in Manhattan federal court several hours later, asserting that the Commodity Futures Trading Commission holds exclusive regulatory jurisdiction over federally registered event contracts and derivatives exchanges.

Filing (Supreme Court of the State of New York, County of New York) → · Office of the New York State Attorney General, Reuters, CNBC

Key points

  • The state petition seeks civil penalties of three times illegal gains and $100,000 per sports wagering offer in New York.Office of the New York State Attorney GeneralCNBC
  • New York cited wagers including a July 24, 2026 baseball contest between the Los Angeles Dodgers and the New York Mets.Reuters
  • Polymarket’s federal complaint asserts New York’s enforcement creates an impossible choice between state criminal liability and federal statutory rights.ReutersCNBC
  • The platform resumed United States operations in December 2025 following approvals from the Commodity Futures Trading Commission.ReutersCNBC
  • The lawsuit follows similar enforcement actions brought by the New York Attorney General against prediction and crypto platforms Kalshi, Coinbase, and Gemini.Office of the New York State Attorney GeneralReuters

Sources4 articles across 4 outlets

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LitigationN.Y.U.S.N.Y. Sup. Ct.S.D.N.Y.ComplianceConsumer protectionLitigationRegulatoryFor practitionersFor governance