New York sues Polymarket, seeks triple gains and $100,000 penalties over prediction markets

According to CryptoSlate, New York has filed a lawsuit against Polymarket, alleging that its US prediction market functions as an unlicensed gambling business within the state. State Attorney General Letitia James petitioned a New York state court to halt QCX LLC, which operates Polymarket US, from offering event contracts without a state gaming license. The legal action seeks restitution, disgorgement, and penalties equal to three times the platform's gains, alongside $100,000 penalties for each unauthorized sports wagering offering.

The state argues that Polymarket contracts constitute wagering because users risk money on outcomes outside their control. The petition covers contracts tied to sports, elections, and culture. Furthermore, the complaint highlights age restrictions, noting Polymarket permits users aged 18 and older, whereas New York mobile sports betting requires users to be at least 21.

CryptoSlate reported that this lawsuit makes Polymarket the latest federally regulated prediction market targeted by New York, following previous legal actions against Kalshi, Coinbase, and Gemini.