- Nevada sued Polymarket for allegedly running unregulated gambling operations that sidestep state licensing laws.
- Concerns arose that Polymarket’s NFL MVP market could reflect insider information since official voting already occurred.
- Tennessee’s only local sportsbook shut down, unable to survive against national competitors under the state’s challenging tax model.
CARSON CITY, Nev. – The sports betting industry entered 2026 facing increased regulatory pressure and market consolidation, as Nevada regulators took legal action against a major prediction platform while Tennessee’s only homegrown sportsbook closed its doors.
Nevada Files Lawsuit Against Polymarket
The Nevada Gaming Control Board filed a civil enforcement action against Polymarket in Carson City District Court on January 20, alleging that the prediction market platform is an illegal gaming business. Nevada officials contend that Polymarket’s prediction markets covering sports outcomes fall under the state’s gambling statutes and require proper oversight. Regulators claim the company provides services similar to licensed Nevada betting sites while skirting the established regulatory framework that governs such operations in the state.
The case represents a step up from Nevada’s past strategy with comparable platforms like Kalshi, which were given cease-and-desist orders before being subject to further enforcement. After purchasing the CFTC-regulated exchange QCEX, Polymarket reentered the U.S. market in late 2025, but Nevada officials insist that state gaming power is not superseded by federal regulation. The case may influence how traditional betting sites and prediction markets are handled.
Polymarket Offers NFL MVP Markets
Polymarket continues to provide prediction contracts on the NFL MVP race despite regulatory scrutiny, but the market has expressed worries because the Associated Press poll to determine the winner has already taken place. Detractors worry the platform could become a venue where prices are influenced by privileged information rather than genuine predictions about future outcomes.
Matthew Stafford of the Los Angeles Rams appears as the favorite on the site, following his recognition with PFWA All-NFL honors and First Team All-Pro selection during his 17th year in the league. Drake Maye of the New England Patriots, who topped the league in completion percentage and was named a Second-Team All-Pro, is still a strong candidate.
While licensed operators continue to offer typical MVP wagers inside the legal sports betting market, both quarterbacks have teams one win away from the Super Bowl.
Tennessee’s Action 24/7 Shuts Down
After failing to compete in the state’s online sports betting market, Action 24/7, the only locally owned and operated legal sportsbook in Tennessee, shut down on Friday.
According to Tina Hodges, founder and president, the state-licensed sports gambling market is now unprofitable for smaller businesses.
The Nashville-based company had early legal challenges, including a license suspension in March 2021 as a result of accusations of money laundering and credit card fraud, but it ultimately succeeded in regaining clearance. Tennessee’s tax system, which imposes taxes on the total wagering handle rather than operator revenue, added to the financial burden.
Following Action 24/7’s departure, Tennessee sportsbooks are now exclusively run by national gaming companies, with 10 licensed operators operating around the state.
