Nevada Court Blocks Polymarket, Raising New Risks for US Users
On Polymarket, there are thousands, if not tens of thousands, of events you can bet on. Heck, you can even create an event right now: betting on yourself to be president of any country. It is a prediction market, and right now, it is all the rage, with action taking place on Polygon, the Ethereum sidechain.
While gambling is technically legal in the US, it depends on what you are betting on and in which state. Each state, for example, California or Florida, has the power to regulate or ban it within its own borders. To put it in perspective, only 39 states allow sports betting, while only seven states allow online casinos. Interestingly, although online versions of gaming are highly restricted, you can walk in and play your favorite game in most states.
Last week, a Nevada state court temporarily blocked Polymarket from offering event-based betting to residents. The ruling landed quietly, but it hit a nerve across crypto, where prediction markets already sit under a regulatory microscope. This comes as US regulators tighten control over who can legally offer crypto-powered bets.
BREAKING: Nevada state court issues temporary restraining order against Polymarket over offering of event contracts, says that the CEA does not vest exclusive jurisdiction in the CFTC. TRO will remain in effect for 14 days; hearing on the PI motion scheduled for 2/11. pic.twitter.com/p1tRk38EMD
— Daniel Wallach (@WALLACHLEGAL) January 30, 2026
POL, which powers the Polygon network that Polymarket runs on, is already under pressure. At press time, it is down -15% in the past week of trading, changing hands at $0.10.
DISCOVER: 9+ Best Memecoin to Buy in 2026
Nevada Court Restricts Polymarket
For everyday users, this ruling raises a simple question. Can you safely use prediction markets from the US? To understand the importance of this ruling, it is best to know how Polymarket operates. Simply put, Polymarket is a prediction market where you can buy “yes” or “no” shares on outcomes like crypto prices, sports games, and more.
In the eyes of the Nevada Gaming Control Board (NGCB), these events look a lot like sports betting. Therefore, because Polymarket does not hold a Nevada gambling license, the state asked a judge to shut it down locally. The court agreed and issued a temporary restraining order ahead of a February 11 hearing.
Looking at this at a deeper level, the ban isn’t because of a federal law. Instead, it is a clash between state-level gambling and federal financial regulations. The NGCB argues that Polymarket contracts are indistinguishable from sports wagering in line with Nevada law. Every “buy” or “sell” share, in their view, acts like a bet, which requires Polymarket to seek a license to operate.
Meanwhile, Polymarket says it is merely operating a derivatives exchange per the CFTC’s guidelines. Every share issued in every event is a “contract” or financial instrument that can be used to hedge risks or predict outcomes. Because of their compliance with the CFTC, they argue they should be protected from state gaming rules.
BREAKING: The Nevada Gaming Control Board has filed a civil enforcement action in Carson City District Court against Polymarket. The Board seeks a declaration and injunction to stop Polymarket from offering unlicensed wagering in violation of Nevada law. pic.twitter.com/LJIRjw1DsD
— Daniel Wallach (@WALLACHLEGAL) January 17, 2026
The judge rejected Polymarket’s main defense, ruling that allowing an unlicensed operator to offer bets undermines the state’s “comprehensive regulatory structure.” Additionally, the court found that allowing the prediction market to operate in Nevada causes irreparable harm to its ability to protect citizens.
DISCOVER: Best Meme Coin ICOs to Invest in 2026
Why This Ruling Matters Beyond Nevada
Although the current ban is a 14-day restraining order, it could lead to a longer preliminary injunction. Polymarket has begun complying with the court’s ruling and is geo-blocking Nevada residents.
Overall, this ruling sends a warning to every US-facing prediction market. If states can enforce gambling laws, platforms may need licenses in all 50 states or may have to drop sports markets entirely. That matters because sports-related bets drive most trading volume on some platforms.
It also creates a sharp contrast in the market. Centralized platforms like Kalshi operate under federal approval, while decentralized apps face patchwork state rules. We have already seen similar tension in US prediction markets offered by large exchanges. For builders, this raises costs and legal risk. For users, it increases the chance of blocked access, frozen positions, or forced exits during live markets.
This ruling follows a familiar US pattern. As seen during Gary Gensler of the SEC, regulators step in first, then courts decide who has authority. Prediction markets sit in an even trickier spot. They blend crypto, finance, and gambling.
In Q1 2026, other states will likely follow Nevada’s lead. For example, New York is already preparing the ORACLE Act. Once enacted, it would ban residents from trading contracts related to gaming, elections, and “catastrophic” events like wars. California is also already investigating prediction markets, alleging that entities like Polymarket are not licensed to operate in the state.
DISCOVER:
Follow 99Bitcoins on X For the Latest Market Updates and Subscribe on YouTube For Daily Expert Market Analysis.
The post Nevada Court Blocks Polymarket, Raising New Risks for US Users appeared first on 99Bitcoins.
