The Nevada Gaming Control Board (NGCB) has launched a civil enforcement lawsuit against Polymarket, marking the prediction market platform’s first major legal challenge in the United States.
The regulator is seeking a court order to prevent Polymarket from offering sports event contracts within the state, arguing that the company’s operations constitute illegal, unlicensed gambling.
In a press release regarding the complaint filed on January 16, 2026, the NGCB stated it is seeking “a declaration and injunction to stop Polymarket from offering unlicensed wagering in violation of Nevada law.” The Board emphasized that under state statutes, “offering sports event contracts, or certain other event contracts, to constitute wagering activity… and, therefore, entities offering such event contracts must be licensed.”
A High Legal Hurdle
Legal experts suggest this direct enforcement action creates a complex path forward for Polymarket. Gaming attorney Daniel Wallach noted that Polymarket will likely attempt to move the case to federal court by arguing federal preemption. However, because the NGCB sued under state law, Polymarket faces a high burden of proof to demonstrate that federal law completely replaces state authority in this specific context.
This contrasts with competitor Kalshi, which sued regulators under federal authority, requiring a lower standard of proof regarding preemption.
Nevada leads the Offensive
Nevada’s aggressive stance highlights a growing trend of state-level resistance to prediction markets. The Board noted that “Nevada’s public policy, as expressed by the Legislature, is that the gaming industry is vitally important to the economy of the state… and therefore must be licensed, controlled, and assisted.”
This lawsuit against Polymarket follows a similar move by Massachusetts, where the Attorney General sued Kalshi in late 2025. While Polymarket recently re-entered the U.S. market in December after acquiring a CFTC-regulated exchange, Nevada’s judiciary has historically sided with state regulators in similar disputes. If the NGCB succeeds, it could set a precedent for other states to move beyond simple cease-and-desist letters to active litigation.
