A Nevada state judge has temporarily barred onchain prediction market Polymarket from operating in the state, in a ruling that challenges the industry’s claim that federal commodities law preempts state gambling rules.
In a Thursday order seen by Cointelegraph, the court granted the Nevada Gaming Control Board a 14‑day temporary restraining order (TRO) against Polymarket operator Blockratize. The order prohibits Polymarket from offering event‑based contracts to Nevada residents while the case proceeds. A preliminary injunction hearing is scheduled for Feb. 11.
At this early stage, the court relied on Nevada gambling statutes and found that Polymarket’s sports and other event markets appear to be unlicensed wagering rather than regulated financial products. The judge cited “immediate” and “irreparable” harm to the state’s ability to police betting integrity, prevent underage gambling and enforce suitability standards if the platform continued operating without a gaming license.
The court rejected Blockratize’s argument that the Commodity Exchange Act gives the U.S. Commodity Futures Trading Commission (CFTC) exclusive jurisdiction over its event contracts, concluding Nevada may apply its own gaming laws. Cointelegraph has reached out to Polymarket for comment.
Nevada’s action follows similar moves elsewhere. Last month, Tennessee’s Sports Wagering Council ordered Kalshi, Polymarket and Crypto.com’s North American Derivatives Exchange to halt sports event contracts for Tennessee residents, void trades and refund users, arguing those products are sports bets subject to state regulation. Tennessee regulators highlighted consumer protection gaps, including age verification and responsible‑gaming tools.
The dispute is part of a broader clash over prediction markets. Kalshi, a CFTC‑designated contract market, has fought state and federal cases with mixed outcomes—winning temporary protections in some jurisdictions (like Connecticut and New Jersey) while facing adverse rulings or dissolved injunctions in others, including Nevada and Maryland. In December, Coinbase sued regulators in Connecticut, Illinois and Michigan seeking federal declarations that CFTC‑regulated prediction markets fall under the Commodity Exchange Act and CFTC jurisdiction rather than state gambling codes.
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