Nevada Court Issues Preliminary Injunction Blocking Polymarket From Operating in the State

A Nevada judge issued a preliminary injunction on June 3 blocking Polymarket from offering event contracts to residents of the state, ruling in favor of the Nevada Gaming Control Board. The order came from First Judicial District Court Judge Jason Woodbury and represents the most durable legal barrier Nevada regulators have secured against the prediction market platform to date, following a temporary restraining order obtained in January 2026.

The ruling turns on a central jurisdictional dispute that is playing out in multiple states: Nevada contends that event contracts tied to sports and other real-world outcomes constitute wagering under state law and require a state gaming license. Polymarket, operating as Blockratize Inc., has argued that federal commodity law under the Commodity Futures Trading Commission governs its products, preempting state gambling regulations. Judge Woodbury rejected that argument at the preliminary injunction stage, finding that Nevada may apply its own gaming statutes while the underlying case is litigated.

What the Injunction Means for Bettors

For Nevada residents who have been using Polymarket to trade on sports and other event markets, the ruling means the platform must now suspend access to the state or face contempt of the court order. Polymarket can either geoblock Nevada users or appeal the preliminary injunction, though an appeal would require persuading a higher court that federal law preempts state gambling authority — a legal argument Nevada courts have rejected at each stage so far.

The ruling does not affect users in other states where prediction markets currently operate, though it provides legal precedent that other state gaming regulators may seek to use. Minnesota enacted legislation directly targeting prediction market platforms earlier this year, prompting Kalshi to file a federal lawsuit to block enforcement. The Nevada injunction adds to a growing body of state-level legal challenges that prediction market operators must navigate as they expand their user bases.

The Broader Prediction Market Picture

Prediction markets had expanded rapidly in the United States following federal regulatory clarity from the CFTC, with platforms like Kalshi and Polymarket drawing significant user growth and institutional investment. However, state-level resistance has proven more durable than many in the industry expected. Both Kalshi and Polymarket face pending state actions, and the Nevada preliminary injunction signals that state gaming regulators are willing to fight for jurisdiction rather than defer to federal frameworks.

The case also intersects with a separate federal investigation into former U.S. Rep. George Santos, who is under scrutiny from the CFTC and Justice Department over suspicious trades he allegedly placed on Kalshi related to his own attendance at President Trump’s State of the Union address. That case has increased congressional attention on prediction market oversight and may affect how federal regulators approach the question of state preemption going forward. Bettors curious about which platforms are available and legal in their states can review the current state-by-state sports betting guide for context on how the legal landscape varies across jurisdictions.