A Nevada state judge has temporarily barred onchain prediction market Polymarket from offering event-based contracts in the state, challenging claims that only federal regulators can oversee such markets.
The court granted the Nevada Gaming Control Board a 14-day temporary restraining order against Polymarket operator Blockratise, halting services to Nevada residents pending a preliminary injunction hearing on February 11.
The judge found that Polymarket’s sports and event markets likely constitute unlicensed wagering under state law and cited “immediate” and “irreparable” harm to Nevada’s ability to enforce betting integrity, underage gambling and suitability standards.
In the ruling, the court rejected arguments that the Commodity Futures Trading Commission has exclusive jurisdiction under the Commodity Exchange Act, concluding Nevada can still apply its own gambling statutes.
The decision follows a broader crackdown at the state level, with Tennessee regulators last month ordering Polymarket, Kalshi and Crypto.com’s derivatives arm to halt sports event contracts and refund users.
Kalshi, a CFTC-designated contract market, has spent nearly a year contesting state and federal actions, securing temporary relief in some jurisdictions while facing adverse rulings in others including Nevada and Maryland.
The dispute comes amid wider legal pressure, with Coinbase suing regulators in multiple states in December to argue that prediction markets listed on CFTC-regulated venues should not fall under state gambling laws.