Polymarket To Serve Two-Week Statewide Ban From Nevada Court

A Nevada district court has issued a two-week statewide ban preventing Polymarket from offering event contracts. Judge Jason D. Woodbury approved a temporary restraining order on 29 January, stopping the platform from operating in the state for at least two weeks. 

The order will remain in place until a preliminary injunction hearing scheduled for 11 February. The decision arrives as regulators across several states challenge the legality of event-based trading products similar to sports wagering.

Regulators argue contracts fall under gambling laws

In granting the restraining order, Judge Woodbury sided with the Nevada Gaming Control Board (NGCB), rejecting arguments that the Commodity Exchange Act gives the CFTC exclusive control over Polymarket’s offerings. According to the filing, the NGCB believes certain sports and event contracts amount to wagering under Nevada law, which require a local licence. 

Furthermore, the regulator argued that unlicensed operators weaken its ability to maintain safeguards such as blocking underage users, preventing insider participation and protecting the integrity of sporting outcomes. 

Judge Woodbury stated: “The balance of hardships and public interest in maintaining meaningful control over Nevada’s gaming industry for the purpose of ensuring its integrity strongly supports issuance of the temporary restraining order.”

Legal battle reflects wider industry uncertainty

The Nevada action highlights the broader legal tension between state gaming authorities and prediction market platforms expanding across the US. Multiple lawsuits and enforcement actions are unfolding simultaneously, creating uncertainty for operators and stakeholders. 

Legal analysts believe the growing number of conflicting rulings could eventually push the issue to the US Supreme Court for clearer guidance. However, state regulators continue to assert jurisdiction, particularly with contracts resembling traditional betting products.

Global scrutiny grows as pressure mounts

Polymarket’s regulatory challenges are not limited to Nevada. Regulators in Hungary and Portugal recently imposed bans based on accusations of illegal gambling activity. Also, Tennessee authorities issued cease-and-desist notices to Polymarket, Kalshi and Crypto.com in January. They requested the companies to prevent access to sports-related markets and reimburse pending stakes.

The platform had only recently resumed limited US operations after previously withdrawing following a settlement with the CFTC during the Biden administration. Despite an increased interest in prediction markets throughout 2025, the latest developments suggest continued resistance to expansion by local and international gaming authorities.