"Polymarket, the cryptocurrency-based prediction market, is facing a class action lawsuit in the Southern District of New York alleging that it operates as an unregulated sports better platform from its Manhattan headquarters. A California resident Lorenzo Miro San Diego argued that the platform, which allows users to trade shares on outcome of an event, essentially offers unregulated online sports gambling in violation of New York's sports betting regulations."
"Other similar prediction markets like Kalshi have faced cease-and-desist letters and lawsuits from state regulators. Earlier this week, Nevada state regulators won a temporary restraining order blocking Polymarket from offering event-based contracts in the state for two weeks after it found the platform to violate Nevada gaming law San Diego's lawyers argue that Polymarket's status as a predictions market is purely cosmetic, intended to mask the reality that the platform facilitates and profits from illegal gambling."
A California resident filed a class-action in the Southern District of New York alleging Polymarket operates as an unregulated sports-betting platform from its Manhattan headquarters. The platform allows users to trade shares on event outcomes and is accused of offering unregulated online sports gambling that violates New York sports-betting regulations. Polymarket has repositioned itself as a nationwide sportsbook available in all 50 states while operating without state licensure. Regulators and state officials have taken action against similar markets; Nevada won a temporary restraining order against Polymarket after finding violations of gaming law. Sports-related contract volume is estimated above $6 billion, with traditional sportsbook-style offerings.
Read at www.amny.com
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