New York sues Polymarket US as the company files its own federal case
Attorney General Letitia James and Governor Kathy Hochul sued Polymarket US on 24 September as an unlicensed gambling business. They want it stopped, with gains forfeited and users repaid. CNBC reported that Polymarket filed its own federal case against the state the same day. The release also says the service opened in December 2025 and that people under 21 can reach it. The requested result is a stop order, fines, forfeiture, and restitution.
Economics & Markets··Midday
The state wants the sports-staking service stopped
Attorney General Letitia James and Governor Kathy Hochul sued QCX LLC, operating as Polymarket US, on 24 September. The attorney general's release says the service opened in the United States in December 2025 for staking money on sporting outcomes, and that it promised users sports followed by markets on everything. The investigation treats the platform as unlicensed gambling in New York and says people under 21 can reach it. The suit asks the court to stop the unlicensed gambling business in New York, impose fines, forfeit all illegal gains, and pay restitution to users. CNBC reported the same 24 September that the company answered that state case in federal court. The two accounts describe one dispute: the state treats the sports-staking service as unlicensed gambling.[1], [2]
100,000 dollars for each wagering attempt, and three times any gains
The state suit seeks 100,000 dollars for each sports-wagering attempt and a penalty of 3 times any gains. James said Polymarket is targeting the most vulnerable. That sentence is the attorney general's own claim in the release. The attorney general's office lists the request as a stop order, fines, forfeiture of gains, and restitution to users. CNBC tied the penalty figure to that same suit. The number is what the complaint asks for, not a sum a court has ordered.[2], [1]
Polymarket wants the case moved to the Southern District of New York
On 24 September Polymarket filed a federal suit against Letitia James and officials of the New York State Gaming Commission. The company also asked to move the state case from a Manhattan state court to the Southern District of New York. CNBC reported both steps as the same day's filing. Chief legal officer Neal Kumar said the company would stay in New York and fight for its users. That line is the company's own statement. The state's request for a stop order and restitution, and the company's request to move the case, are two filings opened on 24 September. Both accounts describe the state request and the company's federal filing as the same day's dispute.[2], [1]
