Polymarket faces its first legal challenge in Nevada

• The Nevada gaming regulator filed a lawsuit against Polymarket, alleging it offers unlicensed wagering in violation of state law
• The complaint seeks a court injunction to stop Polymarket from offering event contracts to Nevada residents
• NGCB cites Nevada Revised Statutes (NRS 463.0193 and 463.01962) to classify certain event contracts as wagering activity

The Nevada Gaming Control Board (NGCB) is once again on the offensive against the prediction market vertical, now targeting Polymarket in a similar legal action that it previously levelled against Kalshi.

The complaint seeks to have courts impose an injunction and stop Polymarket from offering what the regulator considers to be unlicensed wagering, which violates Nevada state laws.

The lawsuit has clarified the legal basis: "Polymarket operates a derivatives exchange and prediction market where it offers event contracts forsale. These products are offered for sale on Polymarket’s mobile app and are made available to people in Nevada. The Board considers offering sports event contracts, or certain other event contracts, to constitute wagering activity under NRS 463.0193 and 463.01962, and, therefore, entities offering such event contracts must be licensed."

Nevada maintains that its gaming industry is a vital part of the state’s economy, and as such, products and services that the company considers unregulated need to be addressed by the law.

Prediction markets have been having some luck, not fully caving in to regulatory pressure, and even winning temporary stays on injunctions. Most recently, a Tennessee federal judge sided with Polymarket, Kalshi, and Crypto.com, allowing the platform to continue operating in the state while deliberations are ongoing.

Legal battles of this sort are taking place all over the country. Recently, a number of plaintiffs joined a class-action lawsuit to challenge the claim that Kalshi is not a gambling platform.

In the meantime, two of the most influential trade groups in the country, the American Gaming Association (AGA) and the Indian Gaming Association (IGA), have called for further scrutiny on the market.

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