Share 
State of Play
- Nevada’s Gaming Control Board has launched the first direct legal challenge against Polymarket’s sports prediction market operations in the state.
- This action marks a significant development as regulators increasingly scrutinize online prediction markets, with potential impacts for US bettors and operators alike.
- Following closely behind Kalshi’s legal challenges, Nevada’s move signals a tougher regulatory environment in a key gambling market.
Last week, the Nevada Gaming Control Board (NGCB) filed a civil enforcement lawsuit targeting Polymarket, specifically seeking to halt the platform’s offering of sports event contracts within Nevada.
The NGCB argues that these contracts constitute unlicensed wagering, violating state laws designed to protect the integrity and economy of the gaming industry.
The board stated its intent is to obtain a declaration and injunction to stop Polymarket’s operations, emphasizing the importance of licensed and controlled gaming activities.
Polymarket recently relaunched its platform in the US
Legal experts suggest Polymarket may attempt to move the case to federal court, contending that federal laws regulate prediction markets. However, Nevada’s legal precedent under Chief Judge Andrew Gordon has favored state regulatory authority in similar cases.
The case contrasts with ongoing litigation involving Kalshi, where federal regulatory conflicts are at issue, whereas Polymarket faces a more stringent legal standard for pre-emption.
Polymarket recently re-entered the US market with a limited relaunch after CFTC approval, highlighting the growing popularity and regulatory scrutiny of prediction markets. Should Nevada succeed in enforcing its gaming laws against Polymarket, it could inspire other states to adopt similar hardline approaches instead of issuing cease-and-desist warnings.
This could limit the availability of unlicensed prediction market products and increase compliance demands for operators. The ongoing legal battle, alongside Kalshi’s appeal to the Ninth Circuit, will be pivotal in shaping the future regulatory framework governing sports prediction platforms in the US.
Based on reporting by Andrew O’Malley for Gambling Insider.
