New York Attorney General Letitia James and Governor Kathy Hochul announced a lawsuit against Polymarket US on 24 September 2026. They allege it runs an illegal gambling operation in the state. It follows earlier New York suits against Coinbase and Gemini (April 2026) and Kalshi (July 2026).
Which Polymarket
The petition names QCX LLC, doing business as Polymarket US. QCX is a Delaware company based in New York City that operates Polymarket’s CFTC-registered US exchange. The international platform at polymarket.com is not a party. That platform already blocks users in the United States, which is what our Polymarket data records.
What New York alleges and wants
The state filed a special proceeding in New York County Supreme Court under Executive Law 63(12). It cites:
- the state constitution’s gambling ban
- Penal Law sections 225.05, 225.10 and 225.20
- the Racing, Pari-Mutuel Wagering and Breeding Law
- the federal Wire Act
The petition says Polymarket US “is not licensed with the New York State Gaming Commission in any capacity”. It says people located in New York can open accounts and trade. The attorney general’s announcement also says the markets are open to users aged 18 to 20.
The state asks the court to permanently bar Polymarket US from running a gambling business in New York without a licence. It also seeks:
- an accounting
- restitution and disgorgement
- damages and penalties, including $100,000 for each offer of unauthorised sports wagering
Polymarket’s response
The same day, Polymarket US removed the case to the federal District Court for the Southern District of New York (No. 1:26-cv-08338). It also filed its own suit against the attorney general and the New York State Gaming Commission (No. 1:26-cv-08345). That suit asks the court to declare that the Commodity Exchange Act preempts New York’s gambling laws for its event contracts. Both cases sit with Judge Ronnie Abrams. As of 28 September neither docket shows a ruling or a temporary restraining order.
In its complaint, Polymarket US describes cutting off New York users and unwinding their positions as a harm it wants to avoid. That indicates New York users still had access when the complaint was filed.
Part of a pattern
New York sued Coinbase and Gemini over their prediction market products in April 2026. It sued Kalshi in July. Elsewhere, federal appeals courts are split on the core preemption question. The Sixth Circuit ruled against Kalshi on 25 September.
What changes in our data
Nothing yet for New York. Since 29 September 2026 our Polymarket data covers Polymarket US too: the United States is recorded as limited (the international site is closed, the US exchange is open), with Nevada and Connecticut as state exceptions. We will add New York state data if a court orders Polymarket US to stop serving the state, or if it geofences New York itself.
Sources
- New York Attorney General, press release and verified petition, 24 September 2026.
- Governor of New York, press release, 24 September 2026.
- US District Court, S.D.N.Y., James v. QCX LLC, No. 1:26-cv-08338 and QCX LLC v. James, No. 1:26-cv-08345, via CourtListener.
- New York Attorney General, Kalshi lawsuit, 31 July 2026, and Coinbase and Gemini lawsuits, 21 April 2026.
Polymarket
United States