A judge has blocked Polymarket from operating in Nevada, the second such action from a lawmaker in the state following the court-enforced, in-effect ban against rival prediction market company Kalshiannounced in April.
Judge Jason Woodbury of the First Judicial District Court for the State of Nevada voted in favor of the Nevada Gaming Control Board, which filed a civil enforcement action against Polymarket back in January, alleging the online prediction market was operating unlawfully in the state.
Nevada Gaming Control Board voices relief on verdict
Nevada regulators have argued that prediction markets operate outside the state’s long-established gaming regulatory framework, which requires sportsbooks and other gambling operators to obtain licenses, comply with consumer protection rules and submit to ongoing oversight. Regulators have also raised concerns about consumer safeguards, including requirements related to age verification, responsible gambling measures, financial integrity and dispute resolution.
The issue carries particular significance in Nevada, where the gaming industry is a cornerstone of the state’s economy and a major source of tax revenue, jobs and tourism. Licensed casinos and sportsbooks pay taxes and fees while complying with extensive state regulations, but prediction markets operate under a different federal framework and do not contribute to Nevada’s gaming tax base in the same way.
State officials have argued that allowing unlicensed prediction markets to offer products similar to sports betting could create an uneven playing field for regulated operators and undermine Nevada’s authority to oversee gambling activity within its borders.
Reacting to the judgement, the Nevada Gaming Control Board said: “Nevada’s public policy, as expressed by the Legislature, 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 of the inhabitants of the state.”
Cancellation of Las Vegas prediction market conference speaks to uneasy relationship in state
A prediction market conference scheduled for Dec 7-9 2026 at ARIA Resort & Casino on the Las Vegas Strip was canceled last month amid concerns about Nevada’s scrutiny of the industry. Reports suggest MGM Resorts canceled the booking after raising concerns about potential issues with state gaming regulators as companies such as Kalshi and Polymarket face legal and regulatory challenges in Nevada.
The Nevada Gaming Control Board had previously said it does not object to prediction market conferences being held in Las Vegas, noting such events are not considered illegal gambling activities. However, regulators emphasized that licensed gaming operators must comply with state gaming laws and protect the integrity of Nevada’s gaming industry. The conference has reportedly been relocated to New York City.
Commodity Futures Trading Commission likely to push legal button
The Commodity Futures Trading Commission (CFTC) could engage in litigation against Nevada’s efforts to block prediction markets is its longstanding position that federally regulated event contracts fall under the agency’s exclusive authority under the Commodity Exchange Act. The CFTC has argued in court filings that contracts listed on federally approved exchanges such as Kalshi are financial derivatives rather than traditional gambling products, meaning states cannot prohibit them simply because they resemble sports betting or other wagers.
The CFTC also has an institutional interest in defending federal preemption. If Nevada and other states can block CFTC-regulated event contracts, the result could be a patchwork of state-by-state restrictions that undermines a national regulatory framework. The agency has already filed court briefs supporting prediction market operators in disputes with state regulators, arguing that federal law should govern these markets uniformly across the country.
Recent court decisions have strengthened the federal government’s argument. In April, the 3rd U.S. Circuit Court of Appeals ruled that New Jersey was likely preempted from enforcing its gambling laws against Kalshi’s sports-event contracts, finding that such contracts likely fall within the Commodity Exchange Act and the CFTC’s jurisdiction.
Any lawsuit involving Nevada could become a pivotal test case with national implications. The dispute is increasingly viewed as part of a wider conflict over whether prediction markets should be regulated as gambling by states or as derivatives by federal authorities. Legal analysts have suggested the issue could ultimately reach the U.S. Supreme Court because of the growing number of conflicts between states and federally regulated prediction market operators.
