New York AG cautions users against Super Bowl 60 prediction markets

• NY's AG has released a statement in which it warned consumers to avoid prediction market platforms during the Super Bowl
• Polymarket received a temporary block for two weeks in Nevada, as gaming regulators argue that prediction markets are not licensed to offer markets on sports events
• AG James has echoed concerns about consumer protections

After Polymarket received a two-week suspension to operate prediction markets in Nevada, Letitia James, New York’s Attorney General, has become the latest official to speak openly against the vertical and urge consumers to look elsewhere if they want to get in on the Super Bowl 60 betting action.

Prediction markets are once again in focus in New York

In a statement released on Monday, James said that prediction markets lack consumer protection measures and that people in the state should try to avoid them altogether. New York is also working on legislation to try to ban these markets.

James’s statement, published by her office earlier this week, didn’t mince its words and designated prediction markets a public enemy:

"New Yorkers need to know the significant risks with unregulated prediction markets. It’s crystal clear: so-called prediction markets do not have the same consumer protections as regulated platforms. I urge all New Yorkers to be cautious of these platforms to protect their money."

The AG also weighed in on the debate over whether prediction markets constituted an investment product, something she outright disagreed with, echoing recent concerns raised by the American Gaming Association and other prediction market hawks.

James insisted that prediction markets argued they are not traditional sports betting products, but in her opinion, they were only "masquerading" as event contracts, when in reality, they bore strong similarities with gambling.

Attorney General disagrees with the premise of prediction markets, cautions agianst them

The AG insisted that many of these platforms operated without the basic protections NY consumers deserve and expect from properly licensed operators, which these platforms are not, James added.

Prediction markets are able to offer a much broader field of betting activity, as they focus not just on game outcomes, but on events during contests. For example, you may place a prediction (not a bet, mind you) on who will attend or what songs will be played during the Super Bowl, for example.

Legal pushback against the sector has been commonplace, with attorneys general and gaming regulators taking a dim view of the sector and alleging it skirted basic rules.

Prediction markets, for their part, have maintained their core argument that they are regulated under the Commodity Futures Trading Commission and thus not subject to gambling rules.

Recently, the CFTC announced a planned overhaul of its rules targeting the operation of these platforms, which would hopefully help clarify the exact operational limits of the companies and whether their offers indeed supersed gaming regulation locally.

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