Attorney sues Polymarket and DraftKings Predictions for breaching South Carolina betting ban

In a complaint lodged in Charleston County, attorney James M. Hughes of Motley Rice contends that Polymarket and DraftKings Predictions are illegally providing sports betting to South Carolinians by disguising wagers as event contracts. He argues that the superficial rebranding does not alter the fact that the companies facilitate bets on sporting outcomes, contravening a colonial-era ban on gambling. The filing highlights the alleged impact on youth, referencing research that shows a high prevalence of sports betting among 18- to 22-year-olds, with a notable fraction betting weekly or daily.

Hughes invokes South Carolina statute 32-1-10 to recover losses over $50 from bets placed within the past three months, with any judgment split between the plaintiff and the affected counties. The lawsuit also names a range of related entities—including the Chicago Mercantile Exchange, North American Derivatives Exchange, Bitnomial Clearinghouse, Wintermute Trading, and Virtu Financial—as co-defendants. This action follows earlier suits against other prediction markets, such as Kalshi and Robinhood, and occurs amid ongoing legal battles over the regulatory status of such platforms.