Polymarket rolls out consumer safeguards as New York challenges its sports contracts

  • Polymarket expanded consumer safeguards after Lorenzo Miro San Diego sued over losses exceeding $1,700.
  • Users previously lacked a way to limit losses, he later said.
  • New York separately sued QCX LLC, alleging unlicensed gambling and seeking restitution and triple damages.

Polymarket introduced consumer-protection controls on September 30, including 30-day, one-year and lifetime self-exclusion, deposit limits for US users, mental-health resources through Birches Health and new moderation guidelines. The programme followed a February 2026 lawsuit by Lorenzo Miro San Diego, who said he lost more than $1,700 on the platform and later said users had no way to limit their losses. The measures resemble safeguards used by sportsbooks and online casinos, although Polymarket argues its event contracts should be treated as financial products. The rollout also came six days after New York Attorney General Letitia James and Governor Kathy Hochul sued QCX LLC, trading as Polymarket US, alleging it operates an unlicensed gambling business and has paid no gambling taxes. The company release does not mention the lawsuit, and Polymarket has not said the measures are connected to it. Deposit limits cover all funding methods, with lower limits applying immediately while higher limits or removed caps do not. The controls are voluntary and do not cap losses, positions or leverage. Polymarket has also launched perpetual futures with up to 20x leverage for permitted international users, outside the US designated contract market rulebook. The company acquired QCX in July 2025 and relaunched US operations in December 2025 after a 2022 CFTC settlement, while a separate CFTC investigation opened in June 2026 reportedly includes its marketing practices. New York is seeking to stop the alleged unlicensed operation, recover gains, provide restitution and impose penalties equal to three times those gains. The dispute remains unresolved, including questions about age eligibility, wallet and KYC enforcement, and whether federal commodity law preempts state gambling rules.

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