Regulators Secure Quick Court Win (Image Credits: Pixabay)
Nevada — A Carson City district judge halted prediction market platform Polymarket from offering event contracts to state residents last week, ensuring no Super Bowl wagers through the service this weekend.[1][2]
Regulators Secure Quick Court Win
District Judge Jason Woodbury sided with the Nevada Gaming Control Board in a ruling dated January 29, 2026. The board had filed a civil enforcement action on January 16 against Blockratize Inc., the company operating as Polymarket. Woodbury determined that the platform offered unlicensed event-based contracts tied to sports like college basketball and professional football.[1]
The temporary restraining order lasts 14 days, pending a February 11 hearing on a preliminary injunction. Woodbury noted the platform lacked a Nevada sports betting license. Every day of operation posed irreparable harm to regulators’ oversight duties, according to the decision.[2]
Polymarket withdrew from the state during this period and plans to challenge the order. The board views these contracts as illegal sports wagering under state law.[3]
Understanding Prediction Markets
Prediction markets let users buy “yes” or “no” contracts on event outcomes, from elections to weather. Overseen federally by the Commodity Futures Trading Commission, they operate nationwide. Platforms like Polymarket gained traction during recent elections but now face sports betting scrutiny.[1]
Nevada regulators argue these sports-related contracts function as unlicensed bets. The American Gaming Association highlighted consumer confusion, with 78 percent of users expecting state regulators to handle disputes. Platforms market them as investments rather than gambling.[1]
Nevada Leads Escalating Legal Push
The Polymarket case marks an aggressive shift for Nevada. Previously, regulators issued cease-and-desist orders to platforms like Kalshi and Crypto.com. In November 2025, a federal judge ordered Kalshi to cease sports contracts in the state; that ruling remains under appeal.[1]
Robinhood also paused sports event contracts pending proceedings. The board recently sued Coinbase in the same court. Nearly two dozen states and tribal authorities pursue similar federal lawsuits nationwide.[2]
- Kalshi: Federal order to halt sports contracts (appeal ongoing).
- Crypto.com: Cease-and-desist letter issued.
- Coinbase: New civil suit filed February 2.
- Robinhood: Voluntarily stopped sports offerings.
Florida gaming attorney Daniel Wallach advised states to sue directly rather than warn via letters. Nevada followed that counsel here.[1]
Super Bowl Stakes Heighten Tension
The order arrives just before Super Bowl LX pitting the Seattle Seahawks against the New England Patriots. The American Gaming Association forecasts $1.76 billion in legal U.S. wagers. Nevada sportsbooks handled $151.6 million last year, posting a record $22.1 million win.[1]
Sports betting thrives legally in 40 states and Washington, D.C. Nevada defends its licensed industry against federal overlaps claimed by prediction platforms.[2]
Key Takeaways
- Nevada’s 14-day ban sidelines Polymarket for Super Bowl LX contracts.
- Regulators target unlicensed sports event contracts as gaming violations.
- Broader state-federal clash intensifies, with lawsuits across two dozen jurisdictions.
Nevada regulators reaffirmed control over gaming integrity as Super Bowl excitement builds. Traditional sportsbooks stand ready while prediction markets test boundaries. What do you think of this regulatory standoff? Tell us in the comments.
