A New York resident has launched a legal challenge against Polymarket, alleging the platform disguises illegal sports gambling as a legitimate “prediction market.” Lorenzo Miro San Diego filed a proposed class action lawsuit in federal court, claiming the site operates an unlicensed betting enterprise accessible nationwide.
The lawsuit directly names three entities associated with Polymarket: Blockratize, Inc., Adventure One QSS, Inc., and QCX LLC. San Diego seeks to represent a class of users who, like himself, believe they were misled by the platform’s presentation.
The core argument centers on the distinction between genuine prediction markets and unlawful sports betting. While Polymarket markets itself as a place to forecast events, the lawsuit contends its functionality mirrors traditional, regulated sportsbooks.
According to the complaint, users aren’t engaging in legitimate prediction; they are effectively placing bets on the outcomes of sporting events and other real-world occurrences. This activity, the suit argues, requires proper licensing under individual state laws – licensing Polymarket allegedly lacks.
The lawsuit highlights Polymarket’s accessibility through Polymarket.com, extending its reach to users across the country. Operating without the necessary state approvals, the defendants are accused of violating laws prohibiting unlicensed sports betting.
This New York case isn’t an isolated incident. Polymarket is already facing legal headwinds in Nevada, where a state court issued a temporary restraining order against the platform. Regulators there argued the site was offering illegal sports wagering to residents, regardless of its “prediction market” label.
The Nevada action underscores a growing trend of regulatory scrutiny towards online platforms attempting to circumvent sports betting laws through semantic labeling. Authorities are asserting that the underlying nature of the activity – wagering on sports – determines its legality, not the terminology used.
San Diego’s claims are based on an investigation conducted by his legal team, combined with his own personal experience using the platform. He is requesting a jury trial and seeking relief for himself and the proposed class of affected users.
As of the filing, Polymarket has not yet responded to the allegations in court. The case promises to further define the legal boundaries between prediction markets and traditional sports betting, potentially impacting similar platforms nationwide.
