New York sues Polymarket US, seeks court order to stop it operating in the state
The attorney general calls Polymarket US an unlicensed gambling operation and wants fines of three times its gains. Polymarket moved the case to federal court and countersued the same day. No court has ruled, and Polymarket US has not been ordered to stop serving New York.
· Announced · Verified 2026-11-03 via official announcement
Announced Sep 24, 2026: New York sues Polymarket US, seeks court order to stop it operating in the state. Affects: Polymarket US users in New York, especially sports traders and users aged 18 to 20. Source: ag.ny.gov, verified Nov 3, 2026. Polymarket code dexsheet.
New York Attorney General Letitia James and Governor Kathy Hochul announced a lawsuit on 24 September 2026 against QCX LLC, which does business as Polymarket US. The state alleges that its prediction markets are an illegal, unlicensed gambling operation and asks a court to stop it operating as an unlicensed gambling business in New York.
The state says Polymarket US has no licence from the New York State Gaming Commission and lets 18- to 20-year-olds trade sports contracts, although New York requires mobile sports bettors to be at least 21. It asks the court to order Polymarket US to forfeit all illegal gains, pay restitution to users and pay fines equal to three times those gains. CNBC reports the petition also seeks $100,000 for each sports wager offered or attempted in New York and an accounting of all trades placed.
Later the same day Polymarket moved the case from state court in Manhattan to the federal court for the Southern District of New York, and it filed its own federal suit against James and the State Gaming Commission. Polymarket argues that the Commodity Exchange Act gives the CFTC exclusive jurisdiction over event contracts on designated contract markets, so New York's gambling laws are preempted, and it seeks declaratory and injunctive relief. Chief legal officer Neal Kumar told CNBC that Polymarket is staying in New York and will fight for its users.
The filings are claims from each side, not findings, and no court had ruled on either case as of 3 November 2026. Polymarket US had not been ordered to stop serving New York residents, and DexSheet found no announcement that it has restricted New York users. The suit targets Polymarket US, the CFTC-regulated exchange; the international polymarket.com already blocks trading from the United States.
New York has taken similar action against other prediction markets: it sued Coinbase and Gemini in April 2026 and Kalshi in July 2026. In other states Polymarket US is under a Nevada court injunction, has agreed to stop sports contracts in Michigan from 25 November, and is suing Louisiana to block expected enforcement.
“The lawsuit is seeking a court order stopping Polymarket from operating as an unlicensed gambling business in New York state and requiring the company to pay fines, forfeit all illegal gains, and pay restitution to users.”
— New York Attorney General press release
Who this affects
Polymarket US users in New York, especially sports traders and users aged 18 to 20. Nothing has changed for them yet; access would only change if a court grants New York's request or Polymarket restricts the state.
Polymarket at a glance
Polymarket is a prediction market where users trade Yes/No outcome shares on an order book. It runs two separate platforms: the international, crypto-based polymarket.com on Polygon, and Polymarket US, a fiat, CFTC-regulated exchange operated by QCX LLC. The international site also lists perpetual futures.
More from the newsroom
Sources
Last checked . Fees and terms change often; the venue's own page wins if it disagrees with ours.
- New York Attorney General - Attorney General James and Governor Hochul Announce Lawsuit Against Polymarket for Running Illegal Gambling Operation — checked 2026-11-03
- New York v. QCX LLC d/b/a Polymarket US, verified petition (2026) — checked 2026-11-03
- QCX LLC d/b/a Polymarket US v. James et al., complaint, S.D.N.Y. (filed 2026-09-24) — checked 2026-11-03
- CNBC - Polymarket countersues New York state over 'unregulated gambling' allegation (2026-09-24) — checked 2026-11-03
- CoinDesk - New York sues Polymarket, alleging it is running an illegal gambling operation (2026-09-24) — checked 2026-11-03
- DeFi Rate - New York Sues Polymarket US Over Sports, Election and Culture Contracts (2026-09-25) — checked 2026-11-03
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