Nevada bans Polymarket for 14 days: a new phase in the conflict between states and prediction markets

A judge in Nevada issued a temporary restraining order prohibiting the operator Blockratize from offering predictive contracts to residents of the state. The decision has reignited the longstanding debate over who should regulate predictive platforms — the federal government or individual states. Nevada, home to numerous licensed casinos and gaming establishments, has decided to take matters into its own hands.

What Nevada’s court decided and the implications

The court sided with the Nevada Gaming Control Board, which argued that Polymarket’s sports and event contracts constitute unlicensed gambling rather than regulated financial instruments. The judge emphasized the seriousness of the situation: if the platform continues to operate without proper licensing, it could harm the state’s ability to maintain the integrity of its gaming industry, protect minors from gambling, and uphold financial transparency standards.

The temporary ban lasts for 14 days, but the decision carries symbolic weight — it demonstrates that the judicial system is willing to stand up for the state’s interests in the face of new fintech platforms.

Federal law versus state regulation: what is the core of the conflict

The industry has long relied on the premise that federal derivatives and securities laws supersede state regulations. However, Nevada’s ruling challenges this assumption. The court in this state recognized that even if a platform presents itself as a financial rather than a gambling product, local gambling regulations can still apply.

This precedent creates uncertainty for platforms like Polymarket, which operate within the federal framework but now must consider the requirements of each individual state.

Wave of regulation: from Tennessee to Nevada and beyond

Nevada is not alone in its approach. Previously, Tennessee also demanded that Polymarket and its competitor Kalshi cease offering sports contracts within its jurisdiction. This trend indicates growing concern among state regulators that prediction markets could circumvent existing gambling laws.

For the industry, this means the era of a unified federal approach is coming to an end. Each state can now set its own requirements, forcing platforms either to adapt to a patchwork of regulations or to scale back their operations in certain regions.