Polymarket Ordered to Temporarily Shut Down in Nevada

• A First Judicial District Court Judge has granted a preliminary injunction to the state against Polymarket
• Polymarket will be forced to temporarily shut down in Nevada if the motion is upheld throughout the court of the state’s lawsuit
• The Nevada Gaming Control Board reported a written order from the court is forthcoming

Nevada has scored another legal victory in its fight against prediction markets.

First Judicial District Court Judge Jason Woodbury recently ruled in favor of the Nevada Gaming Control Board, granting its motion for a preliminary injunction against Polymarket. The prediction market operator will have to temporarily cease business in Nevada throughout the course of the state’s lawsuit if the motion is ultimately upheld.

“We are very pleased with Judge Woodbury’s ruling and will continue to vigorously enforce Nevada law to safeguard gaming in our state,” Nevada Gaming Control Board Chairman Mike Dreitzer said in a released statement.

Temporarily Halting Nevada Services

The Nevada Gaming Control Board reported a written order from the court is forthcoming. Upon the written order, Polymarket will be ordered to cease operations in Nevada until the conclusion of the control board’s lawsuit against the company.

“The Board has taken decisive action in recent months to halt the operations of other prediction markets in the state and has successfully restricted the operation of all unlicensed prediction markets that had been known to be operating in Nevada. Because of previously entered preliminary injunction orders, Kalshi and Coinbase are prohibited from offering or facilitating sports-, election-, and entertainment related event contracts in the state of Nevada,” the board noted in a press release.

The Nevada Gaming Control Board and Polymarket have been embroiled in a legal battle since January when the state filed a civil enforcement against the operator in the District Court for Carson.

In its complaint, the board asked for a declaration and injunction to halt Polymarket from offering unlicensed sports betting in the state.

“Polymarket operates a derivatives exchange and prediction market where it offers event contracts for sale. These products are offered for sale on Polymarket’s mobile app and are made available to people in Nevada. The Board considers offering sports event contracts, or certain other events contracts, to constitute wagering activity under NRS 463.0193 and 463.01962 and, therefore, entities offering such event contracts must be licensed,” the board reported.

Kalshi, Coinbase Also Still Paused in Nevada

The Nevada Gaming Control Board has lodged several victories against prediction market operators since beginning its legal fight last year.

The First Judicial District Court of the State of Nevada in and for Carson City on Friday, March 20, granted the Nevada Gaming Control Board’s request for a temporary restraining order against Kalshi, effectively banning the markets for the next two weeks.

The cessation has since been extended by the courts and Kalshi is still not available in the state.

The same court granted a preliminary injunction motion on March 26 to the Nevada Gaming Control Board regarding Coinbase, forcing the prediction market operator to cease its sports event and entertainment contracts from being offered in the state.

State gaming boards and prediction market operators have been battling in the courts for the last year around the central question of who can legally regulate sports event contracts, and prediction markets, in general.

Companies such as Robinhood, Kalshi, Coinbase, and Crypto.com believe that state regulatory bodies do not have the right to intrude on the government’s “exclusive” authority to regulate prediction market, filing lawsuits in several states to defend its practices. These companies believe the CFTC is the only regulatory body that can legally block contracts from being offered to customers.

State gaming regulators maintain the markets need to be beholden to regulations, taxes, and license fees that sports betting and gaming operators are required to follow.