A class action lawsuit has been filed against prediction marketplace Polymarket, claiming illegal gambling. The suit was filed in the Southern District of New York, claiming that Polymarket is an unlicensed sports betting firm.
The case has been filed with Lorenzo Miro of San Diego as the plaintiff.
An earlier lawsuit was filed in Nevada by the State Gaming Control Board in an enforcement action. A restraining order has been issued, thereby preventing Polymarket from serving individuals. The temporary order expires on February 12th and hence blocks users from betting on the Super Bowl. The order could be extended as there is a hearing scheduled for February 11th.
Polymarket, which is regulated by the Commodity Futures Trading Commission, poses a serious threat to traditional gaming firms and to state regulators who do not like to be bypassed by the Feds.
Other states are doing, or attempting to take, similar action against Polymarket.
The Tennessee Sports Wagering Council issued a cease-and-desist to Polymarket, Kalshi, and Crypto.com in January.
Connecticut took similar action in December 2025 against Polymarket, Kalshi, and others.
Massachusetts won a preliminary injunction against Kalshi after the first of the year.
The Illinois Gaming Board issued a cease-and-desist targeting Polymarket at the end of last month.
The State of Arizona, Attorney General, warned residents against “unregulated prediction markets” in advance of the Super Bowl. A statement issued today by Attorney General Kris Mayes did not mention any platforms by name but stated:
“Illegal sportsbooks may lack testing to ensure compliance with regulatory standards designed to guarantee fair play, oversight to ensure consumers are paid their winnings, security standards to protect personal and financial information, and/or compliance with anti-money laundering law.”
For the 2025 Super Bowl, it is estimated that more than $1.39 billion was wagered on the outcome. Approximately $152 million was bet in the State of Nevada.
Eventually, everything will be sorted through the courts, something that could take years.
