Nevada Court Grants Temporary Restraining Order Against Polymarket
A Nevada state court temporarily blocked Blockratize, operator of Polymarket, from offering event-based contracts in Nevada, citing likely violations of state gaming law. The judge ruled that Polymarket’s activities are not solely under federal oversight and upheld the state's authority to regulate such markets. The order prevents Polymarket from offering sports and event contracts to Nevada residents until a February 11 hearing. This action could force platforms like Polymarket and Kalshi to obtain gambling licenses in each state or stop offering most of their markets. The court emphasized Nevada’s need to prevent unlicensed betting, which undermines regulatory oversight and could allow underage or insider bettors. Recent enforcement actions in Hungary, Portugal, and Tennessee similarly targeted Polymarket for unlicensed gambling. Legal experts warn that patchwork state regulations could raise costs and slow innovation in prediction markets. Concurrently, federal legislation has been introduced to bar government officials with insider knowledge from participating in such markets.
