- A Nevada judge issued a preliminary injunction against Polymarket on Friday, temporarily banning the company from operating in the state.
- Nevada has already done the same to operators Kalshi and Coinbase in an attempt to regulate prediction markets.
LAS VEGAS – Nevada continues to be one of the most aggressive states in terms of regulating prediction markets, as a preliminary injunction was granted against Polymarket last Friday.
First Judicial District Court Judge Jason Woodbury ruled against the prediction market platform, forcing the operator to halt all business related activities during the case. This means that Polymarket cannot offer event contracts, allow access to users in Nevada, or promote any trading-related content to players in the state.
Though the injunction is temporary, it sends a clear message to Polymarket, as well as other prediction market operators, and is a key step in the regulation of prediction markets, both in Nevada and across the country.
Legislators Argue Prediction Markets Are Unlawful
The quarrel that states have against prediction markets is that they operate under different laws than traditional legal sports betting sites, meaning they are not subjected to the same rules for things like age requirements and taxes.
The Nevada Gaming Control Board argued that sporting event contracts, such as the ones offered by Polymarket, meet the criteria to be considered sports betting in the state, and thus should be required to follow the same laws.
Polymarket argued that their contracts are under federal jurisdiction rather than the state level, but the court sided with the state, ultimately granting the injunction.
This is not the first prediction market operator to be temporarily thwarted by the state. Both Kalshi and Coinbase have also been served injunctions for the time being, marking a pattern in an aggressive crackdown related to sports betting sites in Nevada.
It remains to be seen whether or not these bans lead to a long term change, in which case other states would likely follow suit.
