Centuries-Old Law Used In DraftKings, Polymarket Lawsuit
A lawsuit in South Carolina accuses DraftKings Predictions, Polymarket US, and a network of exchanges, clearinghouses, and market makers of facilitating illegal sports betting in the state.
The complaint, filed by Attorney James M. Hughes, names DraftKings and Polymarket-related entities, CME, Crypto.com Derivatives North America, Bitnomial, Wintermute, Jump Trading, DRW, IMC, Galaxy Digital, and Virtu Financial, among others.
Online sports betting is illegal in South Carolina, but some residents are still being harmed.
Statute of Anne
According to the lawsuit, calling the products “prediction markets” or federally regulated “event contracts” does not change their nature.
The platforms allegedly offer South Carolinians wagers on game outcomes and player statistics that function like traditional sports bets.
The defendants are expected to argue that the Commodity Exchange Act places such contracts under the Commodity Futures Trading Commission’s exclusive jurisdiction and preempts state gambling law.
Hughes acknowledged that he has never used the platforms. Instead, he invoked South Carolina’s centuries-old version of the “Statute of Anne.”
The Statute of Anne (1710) is a British law that voided large gambling debts, allowed losers to recover money, and permitted third parties to sue damages. It was later incorporated into U.S. copyright law.
How Lawsuit Could Work
The law allows a gambler who loses more than $50 in one sitting to sue the winner within three months. If the gambler does not sue, another person may pursue the losses and additional statutory damages, with the recovery divided between the plaintiff and the county where the gambling occurred.
Hughes’ lawsuit is not a class action.
The complaint contains one statutory claim and alleges that thousands of South Carolinians have lost more than $50 without seeking recovery.
Hughes requests a jury trial, an accounting of all alleged illegal winnings, damages equal to four times that amount, litigation costs, and interest. and potentially an injunction stopping the defendants’ South Carolina-facing operations.
No court has yet determined that the products are illegal or that any defendant is liable.
The post Centuries-Old Law Used In DraftKings, Polymarket Lawsuit appeared first on GamblingHarm.org.