A prediction markets platform just got hit with a class action lawsuit in New York. The accusations? Operating sports betting without proper licenses. But that's not all—plaintiffs claim the platform's affiliated trading arm was stacking the deck against regular users. Allegedly, this related entity manipulated odds through its market-making operations, creating an unfair playing field. The lawsuit specifically targets how insiders might have exploited their position to tilt probabilities in their favor while everyday traders took the hit. If these allegations hold up, it could spark serious conversations about transparency and conflicts of interest in the prediction markets space. Another reminder that regulatory clarity remains a massive gray area for these emerging platforms.