Polymarket Forced Out of Nevada Just Months After US Relaunch
Polymarket has confirmed that Nevada users are restricted from trading on its platform for at least the next two weeks, following an adverse court ruling.
The platform posted a note on its app, confirming that “Trading [is] not allowed in Nevada.”
The restriction comes after Judge Jason D. Woodbury granted a temporary restraining order against Blockratize Inc., the company behind Polymarket, on Thursday. The Nevada Gaming Control Board (NGCB) filed a civil enforcement action against the prediction market platform earlier in January, claiming it is offering unlicensed gambling.
The order will initially prevent Polymarket from accepting users in Nevada for 14 days. A hearing will then take place on February 11, during which Polymarket can argue its case and seek to have the restriction removed.
Polymarket Will Challenge Ruling
The company said that it will fight the ruling in court. In its note on the app, it states, “Polymarket US is challenging this temporary order in court. We love building with you, and we hope to continue doing so in the near future.
“We’re committed to seeing this through and to reopening access as soon as we’re allowed to do so. We’ll keep you updated as the situation develops.”
A judge in Massachusetts similarly ruled against Kalshi in a recent court battle with the state’s gaming regulator.
The judge has delayed enforcement action against the platform for the time being, but said he will issue an injunction to prevent the company from offering sports markets to Massachusetts residents. Kalshi is appealing the decision.
A series of adverse rulings could mark a turning point in the fight between state regulators and prediction markets. Crypto.com has already withdrawn from Nevada and several other states that have legally challenged its right to operate.
FanDuel and DraftKings also pulled their sports betting licenses from Nevada prior to launching their prediction market platforms.
Polymarket Relaunched in the US Last Year
Polymarket relaunched in the US at the end of 2025 after a three-year hiatus. It was ordered to block US users in 2022 after the Commodity Futures Trading Commission (CFTC) ruled it was operating without a valid license. The company also paid a $1.4 million fine at that time.
Last year, under the Trump administration, the CFTC approved its takeover of the licensed exchange QCEX, paving the way for it to again accept US users.
As prediction market platforms grow increasingly popular, the company has expanded its sports markets, including esports. It now offers livestreaming of many League of Legends, Dota 2, and CS2 events, among others.
Matches regularly attract millions of dollars in trading volume. For example, over $2 million was traded on the LoL match between LGD Gaming and Oh My God in the LPL Group Nirvana.
Savvy users have made use of bots to take advantage of market moves on matches. One bot generated over $200,000 in profit from esports wagers in just a few months.
CFTC Says It Will Clarify Rules For Licensed Operators
Newly appointed CFTC Chair Michael Selig said last week that the agency will clarify its rules around event contracts for licensed platforms.
Selig stated, “For too long, the CFTC’s existing framework has proven difficult to apply and has failed our market participants. That is something I intend to fix by establishing clear standards for event contracts that provide certainty to market participants.”
He added, “Where jurisdictional questions are at issue, the Commission has the expertise and responsibility to defend its exclusive jurisdiction over commodity derivatives.”
This could mean that the agency attempts to fight against state regulators, such as the NGCB. It could also see legal battles take place in federal courts to decide the future of prediction markets.
