Nevada Court Slams Polymarket: Bets Banned, Chaos Ensues

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In the glare of the courtroom, the machinery of law hums like a stubborn oven, and the marketplace stands outside, brushing ashes from its sleeves.

Nevada regulators have moved to block a major crypto-based prediction market from operating in the state. In a rigid display of legal will, a state court ordered Polymarket to halt event-based contracts for Nevada residents. Observers whisper that this ruling exposes the uneasy fit of such platforms with gambling and derivatives law on American soil.

Polymarket Pauses Event Contracts in Nevada Following Court Order

A Nevada state court issued a temporary restraining order preventing Blockratize, the operator behind Polymarket, from offering event-based contracts to residents. The effect is simple and brutal: the firm may not sell those contracts here for now.

Judge Jason Woodbury granted the order on a Saturday after siding with the Nevada Gaming Control Board. The ban stays in place until a hearing on a possible preliminary injunction scheduled for February 11.

Woodbury rejected arguments that federal law shields Polymarket from state oversight. The order states that the Commodity Exchange Act does not grant exclusive authority to the CFTC over Polymarket’s contracts. Nevada regulators argued these contracts qualify as unlicensed sports wagering under state law.

Nevada Gaming Control Board officials said Polymarket’s mobile app allows wagering activity without state approval. Court filings claim such activity thwarts Nevada’s strict licensing regime.

In fact, Judge Woodbury noted that bypassing state rules would cause immediate harm money cannot repair.

Other regulatory concerns captured in the court filing include:

  • Risk of wagers placed by individuals able to influence sporting outcomes.
  • Limited safeguards preventing underage participation.
  • Lack of controls blocking unsuitable or barred individuals.
  • Reduced oversight from regulators tasked with enforcing gaming laws.

Judge Woodbury stated that an unlicensed operator outside the Board’s reach interferes with its ability to carry out statutory duties. Maintaining strong oversight serves the public interest and protects industry integrity.

Polymarket appears to have already stopped offering event contracts within Nevada. Daniel Wallach of Wallach Legal LLC noted on X that the platform had likely complied with the order.

Court Ruling Adds Momentum to Global Scrutiny of Prediction Markets

Legal experts say Nevada’s move could have wider consequences if upheld. Platforms such as Polymarket and rival Kalshi may be forced to seek state-tied licenses.

Sports markets make up a large share of trading activity on many prediction platforms. Losing access to those markets could force companies to rethink how they operate and generate revenue.

Even Alex Chandra, a partner at IGNOS Law Alliance, warned that doubling down on state regulation could strain the sector, raising compliance costs and legal uncertainty.

It appears that Polymarket has already ceased offering event contracts in Nevada.

– Daniel Wallach (@WALLACHLEGAL)

Nevada’s move follows recent actions worldwide. Regulators in Hungary and Portugal issued bans against Polymarket earlier this month, citing illegal gambling activity. Tennessee’s Sports Wagering Council also sent cease-and-desist letters to Polymarket, Kalshi, and Crypto.com, ordering sports markets removed and wagers refunded.

In Congress as well, lawmakers recently introduced the Public Integrity in Financial Prediction Markets Act of 2026. The bill would bar federal officials from trading in prediction markets when holding non-public information or influence over outcomes.

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2026-02-02 17:59