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A Nevada judge has granted a preliminary injunction preventing Polymarket from offering event contracts to residents, escalating the state’s legal battle against prediction markets. The ruling, reported by The Las Vegas Review-Journal, follows similar court orders against Kalshi and Coinbase, indicating a broader effort by Nevada regulators to enforce state gambling laws.
The Nevada Gaming Control Board argues that event contracts are a form of gambling and require state gaming licenses. However, platforms like Polymarket and Kalshi claim their operations fall under federal jurisdiction, regulated by the Commodities and Futures Trading Commission (CFTC) as financial derivatives or swaps.
First Judicial District Court Judge Jason Woodbury granted the injunction, with a formal written order expected to follow. Mike Dreitzer, Chairman of the Nevada Gaming Control Board, welcomed the decision, stating: ‘We are very pleased with Judge Woodbury’s ruling and will continue to vigorously enforce Nevada law to safeguard gaming in our state.’
The conflict highlights the unresolved debate between state gambling regulators and federal financial market oversight. While prediction markets argue federal regulations protect them from state gambling laws, Nevada regulators insist these contracts are essentially sports betting, requiring licensing and oversight to protect public welfare.
Nevada’s aggressive stance includes a cease-and-desist letter sent to Kalshi in March 2025, accusing it of violating state gambling laws. Kalshi responded by suing Nevada in federal court, initially securing a temporary injunction from US District Judge Andrew Gordon. However, Gordon later dissolved the order, questioning Kalshi’s legal argument that sports bets could be classified as commodities or swaps. Gordon remarked, ‘Nobody thought sports bets were commodities or excluded commodities or swaps until some brilliant people at Kalshi [did].’
The legal battles reflect the challenges prediction markets face as states like Nevada push to assert control over what they view as unregulated gambling activities.
