Nevada Court Imposes Block on Polymarket: Escalation of Restrictions in Prediction Markets

Recent court ruling from Nevada marks a new turning point in the regulation of prediction platforms. State judicial authorities issued a preliminary injunction against Polymarket, preventing the platform from operating within its borders and directly challenging Polymarket’s claim of being under federal supervision only.

Preliminary Injunction Questions Polymarket’s Federal Oversight

The Nevada court holds that Polymarket may be violating state gambling laws by offering contracts tied to events within the jurisdiction. The company argued it was protected under federal Commodity Exchange Act, but the court’s decision challenges that interpretation. According to information provided by NS3.AI, the court concluded that federal oversight does not automatically exempt activities from state gambling regulations.

Regulatory Compliance and Growing Pressure on Prediction Platforms

This development reflects a broader trend of increased regulatory crackdowns on prediction markets across various jurisdictions. Multiple similar lawsuits and legislative proposals are being implemented in parallel, creating a regulatory uncertainty environment for industry operators. Prediction platforms face mounting pressure to adjust their business models, implement stricter compliance mechanisms, and assess their exposure in each U.S. state individually. The Nevada case illustrates that claims of federal oversight may not be enough to shield these platforms from state investigations and restrictions, significantly increasing regulatory compliance costs in the sector.