Nevada gaming regulator files civil enforcement action against Polymarket
The Nevada Gaming Control Board has sued Polymarket, alleging its event contracts constitute illegal wagering under state law and seeking a court order to block the platform’s operations in Nevada.
The Nevada Gaming Control Board (NGCB) has taken the rare step of filing a civil enforcement action in Carson City District Court against Polymarket, the popular online prediction market platform, asserting that its offering of event contracts, including sports event contracts, constitutes illegal wagering under Nevada law and must be licensed.
In its complaint, the board asked the court for a declaration and injunction to stop Polymarket from offering “unlicensed wagering” within the state, arguing that prediction-market event contracts are functionally indistinguishablefrom traditional sports bets and therefore subject to Nevada’s strict regulatory regime.
What Nevada Says Is Illegal Wagering
Polymarket operates a derivatives exchange and prediction market where users can buy and sell event contracts, including sports outcomes and other events, via its website and mobile app.
The NGCB’s complaint contends these products are made available to people in Nevada and fall under the statutory definitions of “wagering activity” under Nevada law, specifically NRS 463.0193 and 463.01962, which govern betting and games of chance.
The regulator’s filing names several corporate entities behind Polymarket, including Blockratize, Inc., QCX LLC, Adventure One QSS, Inc., and alleges their conduct violates several provisions of the Nevada Gaming Control Act, including unlicensed wagering and operation of gambling devices without regulatory oversight.
“Nevada’s public policy…is that the gaming industry is vitally important to the economy of the state and the general welfare of the inhabitants and therefore must be licensed, controlled, and assisted to protect the public health, safety, morals, good order, and general welfare,” the NGCB said in its press release announcing the lawsuit.
Broader Legal Battle Over Prediction Markets
The lawsuit marks a significant escalation in Nevada’s enforcement against prediction markets, a relatively new class of wagering platforms that have drawn regulatory scrutiny across the U.S. in recent years.
Until now, much of the legal conflict in Nevada centered on Kalshi, another prediction market operator. In a November 2025 ruling, a federal judge allowed Nevada to enforce a cease-and-desist order against Kalshi’s sports event contracts, concluding they were subject to state gambling law, a decision now on appeal at the Ninth Circuit Court of Appeals.
Unlike prior enforcement actions that began with cease-and-desist orders, Nevada’s civil lawsuit against Polymarket is the first direct state regulatory lawsuit targeting the platform’s offerings, signaling that the state intends to go beyond warnings and seek court orders to halt operations it deems unlawful.
The legal push against Polymarket also comes amid similar actions by other states. For example, Tennessee regulators issued cease-and-desist orders in early January to Polymarket, Kalshi, and Crypto.com over alleged unauthorized wagering products.
Polymarket’s Return to the U.S. and Regulatory Context
Polymarket was previously barred from operating in the U.S. for several years and reentered the market in late 2025 after securing clearance via the acquisition of QCEX, a derivatives exchange and clearinghouse regulated by the Commodity Futures Trading Commission (CFTC).
Under that arrangement, Polymarket claimed compliance with federal oversight, differentiating itself from earlier enforcement challenges.
However, Nevada’s recent civil filing underscores the tension between state gaming authorities and platforms that operate under a federal regulatory framework, especially when the products offered resemble state-regulated gambling.
The board’s position is that, regardless of CFTC oversight, offering sports and other event contracts within Nevada’s borders without a gaming license is unlawful.
Legal experts have suggested that Polymarket may seek to move the case to federal court, arguing that prediction markets fall under federal jurisdiction, a strategy used in other related disputes, but Nevada’s direct state action complicates that path and could raise high legal hurdles over preemption.
What Happens Next
The civil enforcement action now awaits initial court proceedings in Carson City, where Nevada will seek both a judicial declaration confirming the unlawfulness of Polymarket’s activities and an injunction preventing further operations in the state.
A successful ruling for Nevada could establish a template for other states to pursue similar enforcement actions against prediction market operators.
If the court finds in Polymarket’s favor, it could reinforce arguments that federal regulation, via the CFTC, should preempt state gambling law.
If Nevada prevails, it may embolden regulators nationwide to demand licensing or restrict certain prediction-market products without specific authorization.
Landmark Case for Prediction Markets
Nevada’s civil enforcement action against Polymarket represents a major escalation in the regulatory battle over prediction markets and their place in the U.S. wagering landscape.
By framing sports and event contracts as “wagering activity” that must be licensed under state law, Nevada is staking out a firm position that could shape how these platforms operate and are regulated across the country.
As courts begin to consider this case, alongside ongoing appeals involving Kalshi and other prediction operators, the legal status of prediction markets in the U.S. remains one of the most consequential gambling policy questions of 2026.
Players trust our reporting due to our commitment to unbiased and professional evaluations of the iGaming sector. We track hundreds of platforms and industry updates daily to ensure our news feed and leaderboards reflect the most recent market shifts. With nearly two decades of experience within iGaming, our team provides a wealth of expert knowledge. This long-standing expertise enables us to deliver thorough, reliable news and guidance to our readers.
Latest News
