Published on: June 3, 2026, at 11:07h.
Last revised on: June 3, 2026, at 11:07h.
- Nevada judge issues injunction against Polymarket’s event contracts statewide
- Legal challenges for prediction markets intensify as state regulators step in
- Conflict over CFTC regulation versus state gambling authority escalates
A Nevada judge has issued a preliminary injunction preventing Polymarket from providing event contracts to residents of the state, as reported by The Las Vegas Review-Journal.
This ruling places Polymarket among the latest platforms facing stringent scrutiny from Nevada regulators, following similar court actions against event-contract providers such as Kalshi and Coinbase.
Officials in Nevada assert that event contracts are a form of gambling and therefore necessitate state gaming licenses, while prediction platforms maintain that they are under federal jurisdiction rather than state control.
Court Supports Nevada’s Position
Judge Jason Woodbury of the First Judicial District Court granted the Nevada Gaming Control Board’s request for the injunction on Friday, with a formal order anticipated shortly, according to LVRJ.
“We are pleased with Judge Woodbury’s decision and will continue to rigorously uphold Nevada law to protect the integrity of our gaming industry,” stated Mike Dreitzer, Chairman of the Gaming Control Board, in a Monday statement.
There is an increasing backlash at the state level against prediction markets, underscoring the unresolved tension between state gambling regulators and the federal oversight framework applicable to event contracts.
Prediction markets argue that federal oversight effectively shields them from state gambling regulations, a stance that has sparked ongoing legal confrontations with state regulators eager to challenge that interpretation.
Both Kalshi and Polymarket’s U.S. exchanges come under the regulation of the Commodities and Futures Trading Commission (CFTC), as their event contracts are classified as financial derivatives or swaps.
Nevada’s regulators contend that these event contracts represent straightforward sports betting, which “must be licensed, regulated, and monitored to ensure the safety, welfare, and morals of the individuals in the state.”
Stringent Enforcement Actions
In March 2025, the state of Nevada issued a cease-and-desist order to Kalshi, accusing it of breaching state gambling laws and indicating that civil or criminal penalties could follow. The company responded by suing Nevada in federal court, obtaining a temporary injunction from U.S. District Judge Andrew Gordon that temporarily prevented the state from enforcing its actions.
However, Judge Gordon later annulled the protective order and voiced skepticism regarding the validity of Kalshi’s legal argument.
“No one previously considered sports bets to be commodities or to be exempt from commodities or swaps until Kalshi’s proponents shifted that perspective,” Judge Gordon remarked candidly.