A Nevada court issued a temporary injunction prohibiting Polymarket from offering event-based contracts within the state.

A Nevada court has issued a two-week temporary restraining order against Blockratize, the operating entity behind the prediction market platform Polymarket, prohibiting it from offering sports and event contracts to Nevada residents. The court held that Polymarket's operations may violate Nevada's gambling laws and are not protected by the Commodity Futures Trading Commission's (CFTC) "exclusive regulatory jurisdiction." The ruling stated that the Commodity Exchange Act does not grant the CFTC exclusive jurisdiction over Polymarket contracts, and that a platform operating without a state license would hinder the Nevada gambling regulator from fulfilling its statutory duties to prevent match-fixing, underage participation, and the involvement of unqualified individuals. The court considered maintaining the integrity of the state's gambling system to be in the public interest and therefore supported the temporary injunction. If the ruling is upheld in subsequent hearings, Polymarket and its competitors, such as Kalshi, may be required to apply for gambling licenses state by state or be forced to withdraw from the sports-related market. Previously, regulatory agencies in Hungary, Portugal, and the state of Tennessee in the United States had also imposed restrictions on Polymarket, indicating that prediction markets are facing increasingly stringent state-level compliance pressures. (Decrypt)