Court Halts Polymarket Operations in Nevada — Temporary Ban Imposed

A Nevada state court issued a temporary restraining order (TRO) on January 31, 2026 (effective into early February), barring prediction market platform Polymarket (operated by Blockratize Inc.) from offering event contracts—including sports and other real-world outcomes—to residents of the state for an initial 14-day period.

The order, granted by Judge Jason D. Woodbury in Carson City District Court, stems from a civil enforcement action filed by the Nevada Gaming Control Board (NGCB) on January 16, 2026. The NGCB argued that Polymarket’s event contracts constitute unlicensed wagering under Nevada law (NRS 463.160, 463.350, 465.086, and 465.092), requiring a state gaming license. The regulator contended these products function as bets, not shielded by exclusive federal oversight under the Commodity Exchange Act or the Commodity Futures Trading Commission (CFTC).

The court found probable merit in the claims, ruling that federal derivatives regulation does not preempt state gaming laws in this context, and that unlicensed operations could undermine consumer protections against issues like match-fixing, underage access, or ineligible participants. The TRO halts Polymarket’s availability in Nevada pending a February 11 hearing on a potential preliminary injunction.

Polymarket, which uses cryptocurrency for decentralized trading on event outcomes and has seen surging popularity (especially post-2025 U.S. relaunch after CFTC settlement), stated it is reviewing the order and exploring compliance options while continuing to serve users elsewhere. The platform has geo-blocked Nevada access in response.

Legal experts view the ruling as part of escalating state-level scrutiny on prediction markets, following similar challenges to Kalshi (where Nevada dissolved a prior injunction in late 2025) and actions in states like Tennessee, Connecticut, and Massachusetts. It underscores tensions between federal CFTC authority over event contracts and state gambling regulations, potentially setting precedents for other decentralized platforms.

The case highlights ongoing regulatory friction for crypto-native DeFi and prediction services in the U.S., with implications for broader adoption amid calls for clearer federal-state boundaries.