Nevada Targets Polymarket in Expanding Prediction Market Crackdown

Nevada has intensified its campaign against prediction markets, bringing Polymarket into the ongoing legal battle. This move signals that regulators in the USA’s leading gambling jurisdiction are ready to tackle the broader prediction market sector, no longer limiting themselves to individual operators. Overall, Nevada aims to draw a clear boundary around what is considered legal gambling within the state.

Recent Successes Have Emboldened Nevada

On Friday, the Nevada Gaming Control Board (NGCB) filed a civil enforcement action against Blockratize Inc., the company behind Polymarket. The regulator aims to block what it sees as unlicensed wagering. The NGCB has made its position clear: contracts tied to sports fall fully within Nevada’s definition of gambling and require a state license to be offered legally.​

Nevada’s broader goal is to protect a regulatory model that has governed its gaming industry for decades. The NGCB argues that allowing prediction markets to operate without state licenses could erode consumer protections and damage licensed gambling operators. According to the regulator, there is little distinction between a sports bet and a sports event contract, as both allow consumers to profit from the outcome of a game.

The Board considers offering sports event contracts, or certain other event contracts, to constitute wagering activity.

NGCB statement

Polymarket’s inclusion represents a significant escalation. Until now, most of the legal spotlight had been focused on Kalshi, which sued Nevada after last year’s cease-and-desist order. In that case, a federal judge ruled in favor of the state and allowed Nevada to enforce its ban on Kalshi’s sports-related contracts while the company appeals. That decision appears to have emboldened the NGCB to pursue broader enforcement.

Other States Could Follow Suit

This development coincides with similar efforts in other states. Tennessee regulators recently sent cease-and-desist orders to Polymarket, Kalshi, and Crypto.com, further inflaming debates about the regulation of prediction markets. Such platforms insist that federal oversight by the Commodity Futures Trading Commission grants them nationwide reach, while states counter that gambling has always been subject to local control.

​Nevada commands significant influence. As the USA’s most experienced gaming regulator,  its interpretation of the law often shapes how other jurisdictions react. Should the state win its court case against Polymarket, it could encourage similar action nationwide, forcing platforms to obtain state licenses or exit from major markets.

The Board has deemed Polymarket’s operations to be unlawful in Nevada.

NGCB statement

The evolving legal dispute also creates challenges for the traditional sportsbook operators experimenting with prediction-style products. DraftKings and FanDuel have faced significant scrutiny by Nevada regulators despite their efforts to limit the types of contracts they offer. Nevada has made clear it intends to defend its authority aggressively, setting an example for prediction market policies in other states.