Nevada Judge Issues Preliminary Injunction Blocking Polymarket From Offering Event Contracts in the State

A Nevada judge granted a preliminary injunction on June 3 blocking Polymarket from offering event contracts to residents of the state, the Las Vegas Review-Journal reported. The ruling, issued by First Judicial District Court Judge Jason Woodbury in favor of the Nevada Gaming Control Board, represents a significant escalation in the legal battle between state gaming regulators and prediction market platforms nationwide.

The case centers on a fundamental jurisdictional dispute: Nevada argues that event contracts tied to sports and other outcomes constitute wagering activity under state law and therefore require a state gaming license. Polymarket promo code, which operates as the corporate entity Blockratize Inc., contends that its products fall under federal commodity law and are subject to oversight by the Commodity Futures Trading Commission rather than state gambling regulators.

Details of the Ruling

Judge Woodbury’s preliminary injunction order followed an earlier temporary restraining order the Nevada Gaming Control Board had obtained against Polymarket in January 2026. The preliminary injunction provides a more durable legal barrier against the platform’s operations in the state while the underlying case proceeds through the courts. A formal written order was expected to follow the judge’s decision.

Under the ruling, Polymarket must immediately suspend access for Nevada users or risk violating the court order. The platform can either geoblock Nevada residents from accessing its markets or mount an appeal, though the latter would require arguing that federal law preempts Nevada’s gaming statutes — an argument the court has so far rejected. The ruling also gives the Nevada Gaming Control Board precedent to pursue similar actions against other companies offering event contracts tied to sports outcomes.

Prediction market operators have argued that Congress granted the CFTC exclusive authority over event-based contracts when it passed the Commodity Exchange Act, making state gaming laws inapplicable. Nevada’s courts have declined to accept that argument at this stage of the litigation, ruling instead that the state may apply its own gaming laws while the jurisdictional dispute is fully litigated.

Broader Industry Implications

Nevada is not the only state that has moved against prediction market platforms. Minnesota enacted legislation banning Kalshi promo code-style prediction market wagers earlier this year, and Kalshi review sued to block that law. The Nevada injunction against Polymarket adds to a growing patchwork of state-level restrictions on an industry that had expected federal preemption to provide a clear path to operating nationally.

The ruling comes at a particularly sensitive moment for prediction markets, which have attracted significant attention following a separate federal investigation into former U.S. Rep. George Santos over suspicious trades he allegedly placed on Kalshi related to his own attendance at President Trump’s State of the Union address. That case, which was referred to the CFTC and Justice Department by Kalshi itself, has drawn renewed scrutiny to the integrity risks associated with prediction market platforms.

For bettors and market participants familiar with Polymarket, the Nevada injunction means the platform must now navigate compliance requirements in a state that represents one of the largest and most sophisticated gambling markets in the country. Whether Polymarket will appeal or simply geoblock Nevada users remains to be seen, but the ruling signals that state-by-state legal exposure for prediction market operators is real and growing. More information on how these platforms compare can be found in our prediction markets legal guide.