A judge in Nevada has granted the state’s gambling regulator a preliminary injunction against Polymarket. It is another victory for the state, which has been the most successful at fighting against prediction markets offering sports contracts.
Polymarket was forced to restrict users in Nevada in February after Judge Jason D. Woodbury granted a temporary restraining order against the company.
Judge Woodbury upheld that decision and granted the Nevada Gaming Control Board’s (NGCB) motion for a preliminary injunction against Polymarket.
“We are very pleased with Judge Woodbury’s ruling and will continue to vigorously enforce Nevada law to safeguard gaming in our state,” stated NGCB Chairman Mike Dreitzer in a press release.
Other Platforms Also Banned In Nevada
In addition to Polymarket, Nevada has successfully blocked Coinbase, Kalshi, and Crypto.com from offering sports event contracts in the state.
The NGCB stressed that “the gaming industry is vitally important to the economy of the state and the general welfare of the inhabitants and therefore must be licensed, controlled, and assisted to protect the public health, safety, morals, good order, and general welfare of the inhabitants of the state.”
While Nevada is a huge market for casinos, it is a relatively small market for online gambling platforms. In order to wager online, Nevada residents must first register at a physical casino.
Losing access to Nevada residents is not overly damaging to Polymarket, but the ruling will almost certainly be used against the company in other legal battles in other states. As a fully licensed platform in the US, Kalshi has generally been the target of state regulators, but since its relaunch in the country, Polymarket has also been facing legal challenges.
The company is involved in ongoing litigation in Wisconsin, Michigan, Massachusetts, New York, and Rhode Island. But in all other states, users can access the platform, which offers a wide range of sports markets, including all major esports events.
Casinos and Prediction Markets Continue To Do Battle
Prediction markets are seen as a threat to the casino industry, and major operators have refrained from entering the emerging market.
Caesars and MGM, two of the leading casino companies in Vegas, offer online betting, but have said they have no intention of entering into prediction markets.
Nevada warned licensed gambling companies that if they do business with prediction markets, then they risk losing their licenses. This led to DraftKings and FanDuel deciding to withdraw from the state.
Lobbying on both sides has intensified recently, and Kalshi blamed casino-backed groups for an advertising campaign targeting the company.
In response to the original ruling in Nevada in February, Polymarket said it would challenge the decision. A company spokesperson added: “We’re committed to seeing this through and to reopening access as soon as we’re allowed to do so.”
In addition to Nevada, Spain and Indonesia both blocked the platform last week. It is restricted in over 33 countries worldwide.
