Nevada Court Bars Polymarket From State, Testing Federal Jurisdiction Over Prediction Markets
Temporary restraining order challenges claims that only CFTC can regulate event contracts
The ruling represents a significant legal challenge for Polymarket, which has operated under the theory that prediction markets fall exclusively under CFTC authority and that state-level regulations do not apply.
Nevada action suggests states may have more power to regulate prediction markets than the industry has assumed, potentially opening the door to a patchwork of state-by-state rules that could complicate operations for platforms like Polymarket.
The case has broader implications for the evolving legal framework around prediction markets, which have grown substantially in popularity since the 2024 election cycle.
Analysis
Why This Matters
If states can independently regulate prediction markets, it creates significant compliance complexity and could limit market availability.
What to Watch
Whether other states follow Nevada lead and how the jurisdictional question is ultimately resolved in courts.