A Nevada state court has issued a temporary restraining order against prediction market operator Polymarket, dealing a significant setback to the company days before Super Bowl LX.
The order, issued by the First Judicial District Court of Nevada in Carson City, grants the Nevada Gaming Control Board’s (NGCB) renewed ex parte application for a temporary restraining order (TRO) against Polymarket. The court ruled that Polymarket must temporarily cease offering its event contracts to users in Nevada. The TRO will remain in effect for 14 days, with a hearing on the board’s motion for a preliminary injunction scheduled for 11 February.
Court rejects exclusive CFTC jurisdiction argument
In a key finding, the court determined that the Commodity Exchange Act (CEA) doesn’t give the Commodity Futures Trading Commission (CFTC) exclusive control in a way that would block Nevada’s gaming laws at this stage of the case. The ruling undermines Polymarket’s core legal argument that its contracts fall solely under federal derivatives regulation rather than state gaming oversight.
The NGCB has argued that Polymarket’s event contracts, including those tied to sports and other real-world outcomes, constitute wagering activity under Nevada law and therefore require proper state licensing.
Regulator alleges unlicensed wagering in Nevada
The TRO stems from a civil enforcement action filed on 16 January by the NGCB seeking declaratory and injunctive relief to stop Polymarket from operating in the state. This marked the first-ever civil enforcement lawsuit against Polymarket, while another major prediction market platform, Kalshi, has been engulfed in several suits across the US.
According to the board’s complaint, Polymarket operates a derivatives exchange and prediction market through its mobile app and website, making event contracts available to Nevada residents.
Nevada’s Gaming Control Board argues that these bets count as gambling under state law, which means Polymarket would need a license, but it doesn’t have one. The board also says Polymarket is breaking several Nevada gambling laws and claims that the company’s operations are illegal in the state and could threaten Nevada’s highly regulated gaming industry.
Nevada cites public policy and consumer protection
In its filings, the NGCB emphasised Nevada’s longstanding public policy that gaming activities are “vitally important to the economy of the state and the general welfare of its inhabitants” and must be strictly licensed and controlled to protect public health, safety, morals, and good order.
Polymarket will likely seek to remove this case to federal court, where it will end up before Nevada chief judge Andrew Gordon, who ruled against Kalshi, Robinhood and Crypto. PM would have to clear a higher bar — "complete preemption." In other words, automatic remand. https://t.co/V35hxZI6KQ
— Daniel Wallach (@WALLACHLEGAL) January 17, 2026
State regulators argue that allowing unlicensed prediction markets to operate outside Nevada’s regulatory framework would undermine consumer protections and the integrity of the state’s gaming industry.
The upcoming 11 February preliminary injunction hearing will determine whether the restraining order is extended while the case proceeds. A ruling in favor of the NGCB could significantly restrict Polymarket’s ability to operate in Nevada for the foreseeable future.
Kalshi’s legal battle with Nevada
In March last year, NGCB issued a cease-and-desist order against Kalshi, claiming the platform was operating as an unlicenced “sports pool”. Kalshi responded with a lawsuit, which first led to a preliminary injunction in favour of the platform in early 2025, only for a federal judge to reverse it in November. The ruling has renewed debate over whether event‑based trading platforms should be regulated under federal commodities law or state gambling rules.
Similar disputes against Kalshi are emerging in other states. New Jersey granted the company an injunction earlier in the year, while Maryland rejected its claim. California sided with Kalshi in tribal land cases, and Wisconsin tribes are currently suing to block its operations.
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