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New York officials sue Polymarket over alleged unlicensed gambling

Enforcement & compliance

New York Attorney General Letitia James and Governor Kathy Hochul filed a lawsuit against QCX LLC, which operates as Polymarket US, on 23 September, alleging unlicensed gambling in the state. The officials seek to stop operations, recover gains and obtain user compensation and a penalty tied to three times the revenue from the challenged conduct. These are allegations and requested remedies, not a court ruling.

The lawsuit challenges whether Polymarket can operate in New York without a state gambling licence.

Earlier fines and penalties by CFTC

DateCompanyAmountStoryAppeal status
Underdog SportsNot statedUnderdog Sports surrenders fantasy licences in seven US statesNot stated
KalshiUSD 65,000CFTC fines Gabriel Perez $65,000 over Kalshi speech wagersNot stated
Not namedUSD 172,000CFTC sanctions Gabriel Perez over US prediction market tradesNot stated
PolymarketNot statedUS authorities reportedly investigate further prediction-market insider trading casesNot stated
KalshiNot statedConnecticut seeks injunction against Kalshi’s sports event contractsNot stated

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Regulation

Arkansas sues Kalshi over alleged unlicensed gambling

Arkansas has sued Kalshi in Independence County Circuit Court, alleging that its event contracts amount to gambling offered to residents without a state licence. The complaint seeks consumer restitution, civil penalties, taxes and an injunction; the amounts have not been determined, and the allegations have not been assessed by a judge. Kalshi has not publicly responded to this complaint.

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