Nevada Intensifies Actions Against Polymarket in Prediction Market Regulation
Nevada is stepping up its regulatory efforts against prediction markets by including Polymarket in its expanding legal campaign. This action demonstrates the state’s commitment to regulating the growing sector firmly and clarifying what constitutes lawful gambling within its jurisdiction.
Nevada’s Growing Resolve Strengthened by Recent Legal Wins
Recently, the Nevada Gaming Control Board (NGCB) initiated a civil enforcement proceeding against Blockratize Inc., the operator behind Polymarket. The NGCB maintains that Polymarket’s activities fall under unlicensed wagering, stressing that contracts based on sports outcomes are considered gambling and must be licensed within the state.
The overarching goal for Nevada is to uphold its longstanding regulatory framework that safeguards the gaming industry. The NGCB voices concern that allowing prediction markets to operate without licenses could weaken consumer protections and threaten established gambling operators. The regulator points out there is minimal difference between placing a bet on a sports event and participating in a contract based on the same event, as both mechanisms allow participants to profit from the event’s result.
“The Board views offering contracts tied to sports events as forms of wagering activity.”
NGCB statement
Including Polymarket marks a notable escalation in enforcement efforts. Previously, attention was concentrated on Kalshi, which challenged Nevada’s cease-and-desist directive in court. A federal judge ruled in favor of Nevada, permitting enforcement of the state’s ban on Kalshi’s sports-related contracts during ongoing appeals. This outcome has empowered the NGCB to broaden its regulatory reach.
Potential Ripple Effects Across Other States
This increased regulatory activity aligns with similar measures being observed in states like Tennessee, where regulators have issued cease-and-desist orders against platforms such as Polymarket, Kalshi, and Crypto.com. These developments fuel the ongoing debate regarding whether prediction markets should be controlled federally under the Commodity Futures Trading Commission or regulated locally by states as gambling activities traditionally have been.
Nevada holds considerable sway as one of the nation’s most seasoned gaming regulators. Its interpretation of gambling laws often influences other jurisdictions’ responses. If Nevada succeeds in its legal battle against Polymarket, it could trigger comparable enforcement actions across the country, compelling platforms to secure state licenses or withdraw from essential markets.
“The Board has ruled Polymarket’s operations illegal within Nevada.”
NGCB statement
These ongoing legal disputes also create complexities for mainstream sportsbook operators experimenting with prediction market-style offerings. Companies like DraftKings and FanDuel have faced stringent scrutiny by Nevada regulators despite limiting the contract types they provide. Nevada has made its intention clear to robustly defend its regulatory authority, setting a precedent for prediction market oversight nationwide.
