Nevada gaming regulators have taken formal legal action against prediction market operator Polymarket, escalating scrutiny of platforms that offer contracts tied to the outcomes of real-world events. The move places the company directly in the path of state gambling laws that regulators argue clearly apply to sports-related contracts sold to Nevada residents.
The Nevada Gaming Control Board filed a civil enforcement complaint in the District Court for Carson City against BLOCKRATIZE, INC., QCX LLC, and ADVENTURE ONE QSS, INC., all operating under the Polymarket name. The filing asks the court to issue a declaration and injunction that would prohibit the platform from continuing operations the regulator considers unlawful under state law.
State Alleges Unlawful Wagering Activity
According to the complaint, Polymarket operates a derivatives exchange and prediction market that sells event-based contracts through its mobile application. These contracts, including those connected to sporting events, are accessible to users located in Nevada. The Board maintains that offering such products constitutes wagering activity as defined by Nevada Revised Statutes 463.0193 and 463.01962.
Under those provisions, entities that conduct wagering must obtain appropriate gaming licenses. Regulators argue that Polymarket has not secured the required authorization and therefore operates outside Nevada’s regulatory framework. The Board has determined that Polymarket’s activities violate multiple statutes, including NRS 463.160, NRS 463.350, NRS 465.086, and NRS 465.092.
Legal Pressure Builds On Prediction Markets
The lawsuit marks the first major legal challenge Polymarket has faced in Nevada, adding it to a growing list of disputes between state gambling authorities and prediction market platforms across the United States. Regulators contend that contracts tied to sports outcomes function in the same manner as traditional bets, placing them squarely within existing gambling laws.
In a statement included in the court filing, the regulator emphasized the broader policy rationale behind strict oversight of gaming activity: “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.”
Nevada’s action against Polymarket unfolds alongside an ongoing legal battle involving rival platform Kalshi. In that case, a federal judge ruled in November that Nevada could enforce a cease-and-desist order issued against Kalshi. While Kalshi later gained some relief after a judge granted a partial stay during its appeal to the Ninth Circuit on 14 January, the broader conflict over state authority remains unresolved.
Broader Regulatory Conflict Continues
Elsewhere, state regulators have also moved against prediction markets. Tennessee officials recently issued cease-and-desist orders to Polymarket, Kalshi, and Crypto.com. A federal judge temporarily blocked that order, allowing Kalshi to continue operating in the state while litigation proceeds.
Together, these cases highlight the unsettled legal landscape surrounding prediction markets in the US. Nevada’s lawsuit against Polymarket now places another platform at the center of that debate, with the outcome likely to influence how states approach similar products in the future.
Source:
“Nevada Gaming Control Board Files Civil Enforcement Action Against Polymarket”, gaming.nv.gov, January 16, 2026
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