Polymarket, along with its technology platform Blockratize, has been hit with a nationwide class action lawsuit in the Southern District Court of New York, claiming the operator manages an “illegal online sports gambling platform.”
Plaintiff Lorenzo Miro San Diego filed the class action lawsuit on behalf of himself and “all others similarly situated” on February 4.
The filing goes on to state Polymarket distributes its product as a “prediction market, but in reality, is an unlicensed sports betting enterprise prohibited under various state laws.”
On February 3, New York Attorney General Letitia James issued a consumer alert to warn residents of the potential harms regarding “unreliable and unsafe” prediction markets and unlicensed sports wagering.
“Ahead of the Super Bowl, New Yorkers need to know the significant risks with unregulated prediction markets,” James said.
“It’s crystal clear: so-called prediction markets do not have the same consumer protections as regulated platforms. I urge all New Yorkers to be cautious of these platforms to protect their money.”
The consumer alert addressed the conduct, advertisement and promotion of unlicensed sports wagering, which violate New York’s gambling laws and may be subject to civil and criminal liability.
The First Judicial State Court of Nevada for Carson City also issued a temporary restraining order against Polymarket on January 30, claiming an “unlicensed participant…such as Polymarket, obstructs the Board’s ability to fulfill its statutory functions.”
The temporary restraining order will remain in effect for 14 days, as the original case stems from a civil enforcement action filed against Polymarket in Carson City District Court.
Soccer United Marketing formed a new multi-year agreement with Polymarket on January 26, naming the operator as the official and exclusive prediction market partner of the MLS and Leagues Cup tournament
