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A South Carolina attorney has filed a complaint against DraftKings Predictions and Polymarket, alleging the companies violated state gambling laws by offering unauthorized games of chance.
According to the complaint, attorney Jame M. Hughes of Motley Rice argues that prediction markets are gambling and that the defendants "incite and collect winnings from illegal wagers" placed by South Carolina residents on sporting event outcomes. The suit also claims the products are adding to a problem gambling epidemic.
Hughes said in a statement quoted by _GamblingNews_: “This lawsuit is premised on a straightforward thesis: The rhetorical set dressing of ‘prediction markets’ and event contracts doesn’t change reality.”
Complaint adds to pressure on prediction markets
The filing adds to broader scrutiny facing prediction-market operators in multiple states. The source report says the sector is under growing pressure in Washington, Michigan, and New York.
It also points to a separate New York lawsuit announced Friday against Kalshi. In that case, New York’s attorney general and the governor’s office are seeking $36 billion in alleged illegal proceeds and restitution to customers.
What is known, and what is not
The source report does not identify the court where the South Carolina complaint was filed, the exact filing date beyond saying it was filed last week, or the specific South Carolina statutes allegedly violated.
It also does not include a response from Polymarket or DraftKings Predictions.
For New York readers, the immediate significance is not a change to state law, but another example of how prediction markets are being challenged by plaintiffs and regulators who argue these products function as gambling. Any broader impact on operators, customers, or policy will depend on how these cases proceed.
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Source: As reported by gamblingnews.com.
