Nevada (US) Court Issues Temporary Restraining Order Halting Polymarket Activity for State Residents

A Nevada court has temporarily blocked Polymarket’s operator from providing event-based contracts to state residents, signaling a direct confrontation between state gambling statutes and industry claims of federal preemption. The court’s short-term order, requested by the Nevada Gaming Control Board, prevents the platform from operating in Nevada for 14 days while legal arguments proceed and schedules a preliminary injunction hearing for February 11, 2026. At this early stage the judge found that markets tied to sports and other events appear more consistent with unlicensed wagering than with regulated financial derivatives, and expressed concern about enforcement gaps including underage access and betting integrity if the platform continued to operate without state approval. The ruling rejects the operator’s argument that the Commodity Exchange Act hands exclusive jurisdiction to the CFTC and therefore displaces state gambling regulation within Nevada. This development follows a pattern of state-level pushback; Tennessee regulators recently ordered multiple prediction market venues to stop offering sports-related contracts to state residents, and other jurisdictions have produced mixed outcomes for similar disputes. Platforms such as Kalshi and Coinbase have pursued federal court strategies invoking CFTC oversight, producing wins in some states and losses in others, which has left the legal landscape fragmented and uncertain. For market operators, the Nevada order increases the operational and compliance complexity of serving U.S. users, potentially forcing geofencing, product delisting, refunds, or litigation escalation. For regulators, the ruling reinforces the view that consumer protections and gaming controls remain within state authority unless a court definitively rules otherwise. The case could provide a precedent that encourages other states to pursue enforcement, or it could be overturned on appeal or preemption grounds, leaving the industry with continued legal churn. Beyond legal theory, practical friction may arise in technology deployments, KYC/age-verification processes, and business models that rely on nationwide access to event contracts. The decision tightens the timeline for industry actors that have been attempting to secure federal clarity, and it creates a near-term compliance imperative for platforms with U.S. exposure. Investors and product teams will watch the Feb. 11 hearing closely: a sustained injunction could materially disrupt revenue tied to U.S. activity and reshape how prediction markets are structured domestically.