A Nevada state court has issued a temporary restraining order that blocks Blockratize, the entity behind Polymarket, from offering event-based contracts in the state for two weeks. The order, issued Saturday by Judge Jason Woodbury, sides with the Nevada Gaming Control Board and tees up a Feb. 11 hearing on whether a preliminary injunction should follow. The court’s message is that Nevada’s gaming rules still apply when a prediction market looks like wagering on sports and events.
Woodbury ruled that the Commodity Exchange Act does not vest exclusive jurisdiction over the contracts with the Commodity Futures Trading Commission, undercutting a core defense that these products sit solely under federal derivatives oversight. The judge found the platform’s activities likely violate Nevada gaming law and are not shielded by exclusive federal derivatives oversight here. For operators, the ruling converts an abstract jurisdiction debate into an immediate stop-work requirement inside a single state.
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
What the TRO blocks and why the judge called it irreparable
The order blocks Polymarket from offering sports and events contracts to Nevada residents, ahead of Feb. 11, and it frames the activity as unlicensed wagering delivered through a mobile app. The Gaming Control Board’s civil action seeks a declaration and injunction to halt that conduct under state statutes, and Woodbury emphasized the state’s “comprehensive regulatory structure” and “strict licensing standards.” The judge said the harm from evading that structure is immediate, irreparable, and not sufficiently remediable by compensatory damages. He added that an unlicensed participant beyond the Board’s control obstructs oversight functions, including preventing wagers by people who could influence outcomes, blocking underage participation, and keeping unsuitable individuals from involvement. If upheld, the decision signals a state-by-state licensing path or an exit from sports markets that can represent over 80% of some platforms’ volume. Gaming lawyer Daniel Wallach said it appears Polymarket has already ceased offering event contracts in Nevada.
The broader crackdown and the policy response taking shape
The Nevada action adds to mounting regulatory pressure. The decision follows enforcement moves in Tennessee too. The report notes that regulators in Portugal and Hungary issued bans this month, accusing Polymarket of illegal gambling activity. In the U.S., Tennessee Sports Wagering Council sent cease-and-desist letters to Polymarket, competitor Kalshi, and Crypto.com, ordering them to pull sports-related markets accessible to Tennessee customers and refund pending wagers.
A patchwork of enforcement can raise compliance costs and legal uncertainty, potentially deterring investment and slowing new product development. Even Alex Chandra, a partner at IGNOS Law Alliance, said clearer guidelines could standardize the industry and support long-term growth. On Capitol Hill, Ritchie Torres and 30 House colleagues, including former Speaker Nancy Pelosi, introduced the Public Integrity in Financial Prediction Markets Act of 2026. The bill would bar federal officials from trading when they hold material non-public information or can influence a market’s outcome.