Polymarket Faces Temporary Ban in Nevada Amid Regulatory Challenges
Temporary Ban on Polymarket in Nevada
The Nevada Gaming Control Board (NGCB) recently achieved a legal victory when a court issued a temporary restraining order preventing Polymarket, a popular prediction market platform, from offering event contracts within the state for a minimum of two weeks.
Details of the Court Order
On January 29, Judge Jason D. Woodbury granted the injunction against Polymarket. The order is scheduled for review at a hearing set two weeks later, coinciding with the timing of the Super Bowl. Since its US debut in December, Polymarket has limited its offerings to sports markets, though currently, no NFL-related event contracts are accessible on its platform. Interestingly, Polymarket’s international site continues to offer various markets related to the Super Bowl.
The court highlighted that Polymarket provides “event-based contracts” linked to sports such as college basketball, college football, professional football, and also elections. According to Nevada law, these contracts represent wagers, and Polymarket lacks the necessary state license to conduct sports betting.
The judgement emphasized that allowing Polymarket to operate unchecked threatens Nevada’s comprehensive regulatory framework, with risks intensifying as long as Polymarket continues activities outside the board’s jurisdiction.
Earlier, the NFL announced it would not permit prediction market advertisements during the Super Bowl, regardless of the operator, posing an additional obstacle for Polymarket’s US growth aspirations.
Polymarket’s Regulatory Strategy and Industry Context
This injunction is part of a broader crackdown on prediction markets, which gained momentum in 2025 amid a more lenient regulatory climate during the previous US administration. Legal expert Dan Wallach reports that Polymarket appears to have complied by withdrawing its offerings in Nevada for now.
Unlike traditional sports betting companies such as FanDuel and DraftKings, which operate under strict state-by-state licensing, Polymarket contends its event contracts should not be classified as betting. Instead, they view these as contractual agreements, which they argue fall under the oversight of the federal Commodity Futures Trading Commission (CFTC).
Recent developments suggest the CFTC might be adopting a more favorable stance towards prediction markets. Michael Selig, the CFTC chairman, mentioned plans to retract previously proposed regulations designed to curb prediction markets federally.
Despite these potential regulatory shifts, Polymarket and similar platforms are expected to face prolonged legal challenges as they strive to establish their place in the US gambling landscape.
