Nevada Blocks Polymarket Ahead of Super Bowl in Early Legal Win
Nevada has thrown a short-term but meaningful roadblock in front of Polymarket, and the timing couldn’t be worse for the prediction-market platform. With Super Bowl week on the calendar, a Nevada state judge has ordered Polymarket to stop offering event contracts in the state for at least 14 days, delivering an early win for the Nevada Gaming Control Board (NGCB).
The temporary restraining order stems from a civil enforcement action the NGCB filed in mid-January against Blockratize Inc., the corporate entity behind Polymarket. Regulators argue that Polymarket’s so-called “event contracts” function as wagers under Nevada law and therefore require a state gaming license, one Polymarket does not have.
Judge Jason D. Woodbury agreed, at least for now. In granting the restraining order, he ruled the state is reasonably likely to prevail on the merits of its case and that the potential harm to Nevada’s gaming system is both immediate and irreparable if Polymarket continues operating outside the regulator’s authority.
In plain terms, Nevada doesn’t want an unlicensed betting-style product operating during the busiest wagering period of the year.
Why Nevada Moved Quickly
The court order highlights what the NGCB sees as core risks posed by prediction markets operating without state oversight, including:
- Lack of consumer protections, including safeguards against underage participation
- Integrity concerns, particularly wagers placed by individuals who could influence outcomes
- Erosion of Nevada’s licensing framework, which is built on strict suitability standards
Judge Woodbury emphasized that each day Polymarket operates in Nevada increases potential harm, noting that “more consumers means more transactions, and more transactions means more potential harm.”
According to gaming attorney Daniel Wallach, Polymarket appears to have already complied with the order and withdrawn its offerings in the state, at least temporarily.
A Narrow U.S. Footprint, But A Broader Concern
While Polymarket’s U.S. app remains limited, notably not offering Super Bowl contracts, Nevada regulators are focused on the bigger picture. The concern isn’t just what Polymarket is offering today, but what it could offer tomorrow, particularly during marquee sports moments.
The state is also well-versed in this fight. Nevada recently notched a similar legal victory against Kalshi, Polymarket’s primary competitor, when a federal judge ruled the regulator could enforce a cease-and-desist order against the platform’s sports contracts. That decision is now on appeal, but it reinforced Nevada’s position that sports-linked contracts fall under state gaming law, regardless of how they’re labeled.
The Larger Regulatory Collision
At the heart of the dispute is a growing clash between state gaming regulators and federal derivatives’ oversight. Polymarket and Kalshi argue their contracts fall exclusively under the jurisdiction of the Commodity Futures Trading Commission (CFTC), not state gaming agencies.
That debate is far from settled. The CFTC has signaled it plans to revisit and clarify its approach to event contracts, potentially opening the door to broader offerings nationwide. But until that happens, Nevada intends to enforce its own rules aggressively.
A hearing on whether the temporary restraining order becomes a longer preliminary injunction is scheduled for Feb. 11. The outcome could shape how far states can go in policing prediction markets, and how quickly these platforms can expand into sports-heavy territory without running into regulatory resistance.
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