Polymarket has been hit with a class action lawsuit in the Southern District of New York, accusing the platform of operating as an unlicensed sports betting firm ahead of the Super Bowl.
The lawsuit was filed by Lorenzo Miro of San Diego and follows a separate enforcement action in Nevada, where regulators secured a temporary restraining order blocking Polymarket from serving state residents.
The Nevada order, which currently prevents users from betting on the Super Bowl, is set to expire on February 12 and could be extended after a hearing scheduled for February 11.
The legal pressure comes as Nevada’s Gaming Control Board has also sued Coinbase over its own prediction markets, prompting Coinbase to file a countersuit arguing federal preemption.
Polymarket, which says its contracts fall under the jurisdiction of the Commodity Futures Trading Commission, faces similar actions from other states including Tennessee, Connecticut, Illinois and Massachusetts.
Arizona Attorney General Kris Mayes, warned residents against unregulated prediction markets, saying:
“Illegal sportsbooks may lack testing to ensure compliance with regulatory standards designed to guarantee fair play.”
The disputes are unfolding as betting interest surges, with an estimated $1.39 billion wagered on the 2025 Super Bowl, underscoring the high stakes as courts weigh state gambling laws against federal oversight.