New York Attorney General Letitia James and Governor Kathy Hochul sued QCX LLC, the operator of Polymarket US, alleging that the prediction-market platform offered event contracts without a New York State Gaming Commission license. New York seeks to stop the company's operations in the state, secure customer restitution, recover allegedly illegal gains and impose civil penalties, including $100,000 for each alleged unauthorized sports-wagering offer. Polymarket filed a lawsuit in Manhattan federal court on Thursday evening against James and other state officials to prevent them from regulating its prediction market, arguing that the Commodity Futures Trading Commission has exclusive authority over prediction markets. The competing litigation intensifies a national dispute over whether CFTC-regulated event contracts are federally governed derivatives or gambling products subject to state licensing, age-limit and consumer-protection rules. Nearly 50 active state lawsuits target CFTC-registered exchanges, while Polymarket also brought a preemptive federal case against Massachusetts in February.