New York Attorney General Files Lawsuit Against Polymarket

New York Attorney General Letitia James has sued Polymarket, alleging that its US entity, QCX LLC, operates an illegal gambling business within the state. The lawsuit challenges the platform's reliance on federal CFTC approval to bypass state-level gambling regulations. New York is seeking to halt operations, recover alleged illegal gains, and impose fines totaling three times those gains. This case highlights a growing conflict between federal regulatory status and state-level gambling laws, mirroring ongoing legal disputes involving other prediction markets like Kalshi.