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Nevada court hits Polymarket with two-week statewide ban

Steve Tyler Exec Content

Nevada court hits Polymarket with two-week statewide ban

Summary

A Nevada federal judge issued a temporary restraining order on 29 January that stops Polymarket from offering sports and event contracts to residents of Nevada for at least two weeks. Judge Jason D. Woodbury sided with the Nevada Gaming Control Board (NGCB), finding that allowing unlicensed prediction markets to operate undermines the state’s ability to regulate wagering integrity, stop underage participation and keep unsuitable participants out. The order will be reviewed at a preliminary injunction hearing on 11 February.

Key Points

  • Judge Jason D. Woodbury granted a temporary restraining order on 29 January blocking Polymarket from offering sports and event contracts to Nevada residents.
  • The NGCB argued Polymarket is operating unlicensed wagering in Nevada and that such activity requires a licence under state law.
  • The court found the Commodity Exchange Act does not give exclusive jurisdiction over Polymarket’s contracts to the CFTC, supporting the NGCB’s position.
  • The restraining order is temporary and will be reconsidered at a preliminary injunction hearing on 11 February.
  • The NGCB cited risks to gaming integrity, potential influence on sporting events, and prevention of underage or unsuitable participants as reasons for the action.
  • This action is part of a wider global and US pushback against prediction markets — recent bans or enforcement moves have come in Hungary, Portugal and US states such as Tennessee.
  • Polymarket relaunched limited US operations after an earlier regulatory settlement with the CFTC; ongoing disputes may eventually reach the US Supreme Court, say legal experts.

Context and relevance

This ruling sits in the middle of a growing regulatory clampdown on prediction markets and event-based trading platforms. After a surge in popularity in 2025, regulators across jurisdictions have pushed back, arguing some markets amount to unlicensed gambling. The Nevada order illustrates how state gaming authorities are asserting control and could shape whether prediction markets operate freely across US states or face significant fragmentation and legal risk. For operators, investors and compliance teams, the case signals heightened enforcement risk and potential market restrictions.

Why should I read this?

Short version: if you follow prediction markets, crypto wagering or online gambling, this matters. Nevada’s two-week freeze is not just a hiccup — it’s a test case showing states will act fast to curb unlicensed markets. Could change how platforms launch, where they accept customers, and what licences they need. Read on if you want the quick legal and market implications without wading through court filings.

Author style

Punchy — this is a legal speed bump that could become a major regulatory roadblock. The piece flags a likely escalation of disputes that stakeholders should watch closely.

Source

Source: https://next.io/news/regulation/nevada-court-hits-polymarket-two-week-ban/