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A Nevada federal court has issued a temporary restraining order against Polymarket, prohibiting the prediction markets platform from offering event contracts to state residents for at least two weeks.
Judge Jason D. Woodbury granted the order on Thursday, 29 January, with a review hearing scheduled for 11 February. The decision represents the latest development in the ongoing legal battle between prediction markets operators and state gaming regulators across the United States.
Court Sides with Nevada Gaming Regulator
In his ruling, Judge Woodbury sided with the Nevada Gaming Control Board (NGCB), determining that the Commodity Exchange Act does not grant the CFTC exclusive jurisdiction over Polymarket’s contracts. The order prevents Polymarket from offering sports and events contracts to Nevada residents ahead of the preliminary injunction hearing.
The court found that unlicensed market participants outside the NGCB’s regulatory oversight, such as Polymarket, interfere with the regulator’s ability to execute its statutory responsibilities. These include preventing wagers from individuals who could influence sporting event outcomes, blocking underage participants, and keeping unsuitable individuals from involvement in gaming activities.
“The balance of hardships and public interest in maintaining meaningful control over Nevada’s gaming industry for the purpose of ensuring its integrity strongly supports issuance of the temporary restraining order,”
Judge Woodbury stated.
NGCB Enforcement Action
The NGCB filed the civil enforcement action in the District Court for Carson City on Friday, seeking to halt Polymarket’s allegedly unlicensed wagering operations in the state. The gaming body, led by Mike Dreitzer, argued that sports event contracts and certain other event contracts constitute wagering activity under Nevada law, which requires proper licensing.
Broader Regulatory Challenges
The Nevada case forms part of a wider regulatory pushback against prediction markets, which experienced significant growth in 2025 under a more favorable regulatory climate during the Trump Administration. However, the sector continues to face resistance from state gaming regulators, with multiple federal court cases currently addressing jurisdictional questions.
Legal experts anticipate the complex network of often conflicting cases—which has disrupted the American online gambling sector, will eventually reach the US Supreme Court for final resolution.
Beyond the United States, international regulators have also taken action against Polymarket. Hungary and Portugal issued bans against the platform last month, citing illegal gambling activity. The platform is currently blocked in a growing number of countries worldwide.
In January, Tennessee’s gambling regulator sent cease-and-desist letters to Polymarket, Kalshi, and Crypto.com, ordering the companies to immediately remove sports-related markets accessible to Tennessee customers and refund pending wagers.
Polymarket’s US Market Status
Polymarket recently resumed limited US operations after previously exiting the market following a regulatory settlement with the CFTC during the Biden Administration. The platform’s relaunch has been met with immediate legal challenges in multiple states.
The 11 February hearing will determine whether the temporary restraining order will be extended through a preliminary injunction while the case proceeds.
Source: Nevada Gaming Control Board
