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Nevada state court issues temporary restraining order against Polymarket

Judge Jason Woodbury ruled the Commodity Exchange Act does not vest exclusive jurisdiction in the CFTC, while the temporary restraining order will remain in effect for 14 days.

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Nevada state court issues temporary restraining order against Polymarket
Key Points
Woodbury claimed the ‘resulting harm’ in Nevada’s regulatory structure is ‘immediate, irreparable and not sufficiently remediable by compensatory damages’
The NGCB previously filed a motion for preliminary injunction against Polymarket, with the hearing now rescheduled for February 11

The First Judicial State Court of Nevada for Carson City has issued a temporary restraining order against Polymarket, claiming an “unlicensed participant…such as Polymarket, obstructs the Board’s ability to fulfill its statutory functions.”

Judge Jason Woodbury ruled: "The question of federal preemption in this regard is nuanced and rapidly evolving. At the moment, the balance of convincing legal authority weighs against federal preemption in this context.

"The resulting harm in evasion of Nevada's 'comprehensive regulatory structure' and 'strict licensing standards' is immediate, irreparable and not sufficiently remediable by compensatory damages. The Board has a statutory duty to protect the public and advance Nevada's interest in administering a reputable gaming industry with integrity.”

The Nevada Gaming Control Board (NGCB) had previously filed a motion for preliminary injunction against Polymarket on January 20, with a hearing rescheduled for February 11 in Nevada state court. 

The temporary restraining order will remain in effect for 14 days, as the original case stems from a civil enforcement action filed against Polymarket in Carson City District Court, as well as the prediction market operator’s technology platform Blockratize. 

Woodbury continued: "The balance of hardships and public interest in maintaining meaningful control over Nevada's gaming industry for the purpose of ensuring its integrity supports issuance of the temporary restraining order."

Within its January 20 filing, the NGCB asked the court for a declaration and injunction which would prohibit Polymarket from offering “unlicensed wagering” in violation of state law.

“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 NGCB stated. 

Fellow prediction market operators such as Kalshi and Crypto.com are also currently engaged in legal battles with Nevada regulators, but the January 2026 filing represents the first case to involve Polymarket.

Good to know

Soccer United Marketing formed a multi-year agreement with Polymarket on January 26, naming the operator as the official and exclusive prediction market partner of the MLS and Leagues Cup

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