South Carolina Lawyer Sues Polymarket, DraftKings Over Anti-Gambling Laws

• Polymarket and DraftKings Predictions accused of violating South Carolina's anti-gambling laws.
• Prediction markets offer sports betting under the guise of selling event contracts, according to the plaintiff.
• The lawsuit alleges that these platforms fuel a gambling addiction epidemic, particularly among young sports bettors.
• South Carolina has strict anti-gambling laws in place since 1912, with potential for individuals to recover losses and damages.

A South Carolina lawyer has filed a complaint against Polymarket and DraftKings Predictions, alleging that they are violating the state's anti-gambling laws. The plaintiff claims that these prediction markets offer sports betting to South Carolinians under the guise of selling event contracts. This lawsuit is not an isolated incident, as other prediction markets have faced similar allegations in the past. In June 2025, South Carolina Gambling Recovery sued Kalshi and Robinhood Markets, claiming violations of state and federal laws. However, this case was removed to federal court and a stay was granted pending the outcome of similar cases before appellate courts.

South Carolina has had strict anti-gambling laws in place since 1912. The plaintiff is suing under S.C. statute 32-1-10, which allows any individual within the state to recover losses greater than $50 from illegal bets made within the past three months, plus damages. This colonial-era law provides a unique opportunity for individuals to seek compensation for their losses. Additionally, the Commodity Futures Trading Commission has shown support for prediction markets in a dispute with Nevada's Gaming Control Board, highlighting the complex regulatory landscape surrounding these platforms.

This lawsuit highlights the ongoing tension between state anti-gambling laws and the growing popularity of prediction markets. As more states begin to relax their gambling regulations, it is essential for lawyers advising clients on sports betting to be aware of the potential exposure under state laws. The plaintiff's claims that problem gambling is a significant harm caused by these platforms, particularly among young sports bettors. With almost 60% of 18- to 22-year-olds gambling on sports each year, it is crucial to address this issue and ensure that individuals are not being taken advantage of by fundamentally rigged systems.

Lawyers advising clients on sports betting should be aware of the ongoing litigation and potential exposure under state anti-gambling laws, particularly in South Carolina where the plaintiff is seeking to recover losses from illegal bets.

Source: Original reporting via Courthouse News Service