The area known as the Liberties was so named because it was situated outside the medieval city walls and was run by local courts, free of city regulations on trade.
The area was named the Liberties because it was a popular spot for gambling 
mnli hypothesis: The area was named the Liberties because it was a popular spot for gambling  premise: The area known as the Liberties was so named because it was situated outside the medieval city walls and was run by local courts, free of city regulations on trade.