New York defies Trump admin, asks court to shut down Polymarket gambling

Polymarket’s main platform technically hasn’t been available in the US since 2022, when the CFTC ruled it was an illegally unregistered exchange. Polymarket’s website is restricted to view-only mode in the US, though users can get around that with a virtual private network. Polymarket promoted its platform in the US with a campaign that paid dozens of social media users to film themselves making fake bets on copies of the Polymarket website, The Wall Street Journal reported in June. Polymarket is seeking the CFTC’s permission to bring its main exchange back to the US, but it was able to launch a more limited, mobile-app version in December 2025 after acquiring QCX, a CFTC-licensed firm. The New York lawsuit was filed against QCX LLC, also known as Polymarket US. The lawsuit said examples of bets offered by Polymarket include whether the Green Bay Packers would win a football game against the New York Giants, who would win the Super Bowl in February 2026, and who would win college basketball games such as the March 20, 2026 contest between Hofstra University and the University of Alabama. The Supreme Court may ultimately decide whether states can restrict or prohibit sports gambling on prediction markets. While the US Court of Appeals for the Third Circuit ruled that New Jersey cannot regulate sports bets on prediction markets, the Ninth Circuit appeals court ruled that Nevada can stop Kalshi from allowing sports bets. The circuit courts disagree on whether a sports bet on a prediction market meets the federal definition of a “swap,” which can only be regulated by the CFTC. New Jersey recently urged the Supreme Court to settle the matter once and for all. “Companies like Kalshi claim to offer legal sports betting in all 50 states, but they refuse to follow the gambling laws of any state,” New Jersey Attorney General Jennifer Davenport said at the time.