Nevada Targets Polymarket in Expanding Prediction Market Crackdown
Summary
Nevada’s Gaming Control Board (NGCB) has filed a civil enforcement action against Blockratize Inc., the company behind Polymarket, marking a clear escalation in the state’s campaign to curb prediction markets it deems to be offering unlicensed sports wagering. The NGCB argues that sports-related contracts traded on prediction platforms are equivalent to wagering and therefore require a Nevada state licence. This follows earlier actions against Kalshi and comes amid similar moves in other states such as Tennessee.
The regulator says its goal is to protect Nevada’s longstanding regulatory model, consumer protections and licensed operators. If Nevada succeeds in court, other jurisdictions may follow its lead, potentially forcing prediction platforms to obtain state licences or withdraw from major US markets.
Key Points
- The NGCB filed a civil enforcement action against Blockratize Inc. (Polymarket), alleging unlawful, unlicensed wagering.
- Nevada regards sports event contracts on prediction sites as wagering that requires a state licence.
- This action escalates enforcement after a federal judge allowed Nevada to enforce its ban on Kalshi’s sports-related contracts while appeals continue.
- Other states (for example Tennessee) have issued cease-and-desist orders, signalling a broader regulatory push.
- Platforms claim federal oversight by the CFTC gives them national reach; states insist gambling regulation remains a local matter.
- A Nevada victory could spur similar actions nationwide and complicate offerings from mainstream sportsbooks experimenting with prediction-style products.
Why should I read this?
Short version: this could reshape who can legally run prediction markets in the US. If you work in iGaming, crypto trading platforms, compliance or legal counsel, or you run a sportsbook product, this is one to keep an eye on — Nevada’s moves often set precedent. We’ve done the reading so you don’t have to: big regulatory risk for prediction platforms and possible market access headaches ahead.
Context and Relevance
Nevada is the most experienced US gaming regulator and its interpretation of wagering law carries weight. The NGCB’s stance pits state gambling regulators against platforms that argue for federal oversight by the CFTC. The dispute highlights a wider policy question: whether novel contract-style prediction markets are financial instruments under federal law or gambling under state law. The outcome will affect platform strategy, product design for sportsbooks (DraftKings, FanDuel) and the regulatory landscape for crypto-linked marketplaces.