Polymarket has announced that users in Nevada can no longer trade on its website. The platform confirmed that this restriction will last for at least the next two weeks. This sudden change is the result of a recent court decision.
The company posted a message on its app stating that trading is not allowed in Nevada right now. This news comes just a few months after Polymarket relaunched in the United States. Users in the state are now unable to place new bets or trades on the platform.
Court Order Blocks Access
The restriction happened because of a ruling by Judge Jason D. Woodbury. He granted a temporary restraining order against Blockratize Inc., the company that operates Polymarket. This order was issued on a Thursday.
The Nevada Gaming Control Board, often called the NGCB, filed a legal action against the platform earlier in January. The state agency claims that Polymarket is offering unlicensed gambling services. Because of this, the judge decided to block the platform temporarily.
The current order prevents Polymarket from accepting users from Nevada for 14 days. After that period, a hearing is scheduled for February 11. During that hearing, Polymarket can argue its case and try to get the restriction removed.
Polymarket Will Challenge Ruling
The company said it plans to fight this decision in court. In its note to users, Polymarket stated that it is challenging the temporary order. The company expressed its commitment to continuing its work with users.
They mentioned that they are dedicated to seeing this process through. Their goal is to reopen access for Nevada users as soon as they are legally allowed to do so. They promised to keep users updated as the situation develops.
This legal trouble in Nevada is not an isolated incident. A judge in Massachusetts recently made a similar ruling against another prediction market platform called Kalshi. That case also involved the state’s gaming regulator.
The judge in Massachusetts delayed enforcement action for the time being. However, the judge said an injunction would eventually be issued to stop Kalshi from offering sports markets to residents in that state. Kalshi is currently appealing that decision.
Regulatory Challenges Grow
A series of court losses could signal a turning point in the ongoing battle between state regulators and prediction markets. Other companies are also facing similar issues in different states.
Crypto.com has already pulled out of Nevada and several other states. These states legally challenged the company’s right to operate within their borders. The regulatory environment is becoming increasingly difficult for these platforms.
Even major sports betting companies have changed their strategies in Nevada. FanDuel and DraftKings previously pulled their sports betting licenses from the state. They did this before launching their own prediction market platforms.
Polymarket had only recently returned to the US market. The platform relaunched in the country at the end of 2025. This return happened after a three-year break from serving US customers.
In 2022, the Commodity Futures Trading Commission, or CFTC, ordered Polymarket to block US users. At that time, the agency ruled that the platform was operating without a valid license. The company also had to pay a fine of $1.4 million.
Last year, under the Trump administration, the CFTC approved Polymarket’s takeover of a licensed exchange called QCEX. This approval paved the way for the platform to once again accept users from the United States.
As prediction markets become more popular, Polymarket has expanded its offerings. The platform now includes sports markets, specifically focusing on esports. It provides live streaming for many events in games like League of Legends, Dota 2, and CS2.
These esports matches often attract millions of dollars in trading volume. For example, a match between LGD Gaming and Oh My God in the LPL Group Nirvana saw over $2 million traded.
Some users have developed bots to take advantage of market movements. One specific bot generated over $200,000 in profit from esports wagers in just a few months.
Future Rules for Licensed Operators
The CFTC recently appointed a new chair, Michael Selig. Last week, he announced that the agency plans to clarify its rules regarding event contracts for licensed platforms.
Selig explained that the current framework has been difficult to apply. He believes it has failed market participants and intends to fix this. His goal is to establish clear standards that provide certainty for everyone involved.
He also noted that where jurisdictional questions are an issue, the Commission has the expertise to defend its exclusive jurisdiction over commodity derivatives. This could mean the CFTC will fight against state regulators like the NGCB.
It is possible that future legal battles will take place in federal courts. These cases will likely help decide the future of prediction markets in the United States.