New York Attorney General Sues Polymarket US Over Unlicensed Gambling

New York Attorney General Letitia James filed a lawsuit on September 24 against QCX, the operator of Polymarket US, alleging the platform conducts unlicensed gambling activities within the state. The state claims the service violates gambling laws by allowing bets on uncertain events without a license, failing to pay required taxes, and permitting users under 21 to participate. The lawsuit seeks to halt operations, recover illegal profits, and impose penalties. In response, QCX filed a countersuit in the U.S. District Court for the Southern District of New York, arguing that its event contracts fall under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC) and that federal law preempts state gambling regulations.