Nevada ruling puts prediction-market trading at risk

A federal judge has sent a dispute involving Polymarket’s parent company Blockratize back to Nevada state court, increasing the likelihood that state regulators could try to halt prediction-market trading. In a Monday order the judge rejected arguments that the Commodity Exchange Act and the Commodity Futures Trading Commission fully preempt state gaming laws, finding the CEA’s savings clause does not completely displace state authority and that the companies had not shown a basis to block Nevada’s action at this stage.

The decision allows the Nevada Gaming Control Board to press its civil enforcement case in state court, where it could seek an injunction restricting Nevada residents from accessing event contracts offered by Polymarket or Kalshi. In response, Polymarket’s parent filed a motion asking for a brief administrative stay of the remand order, a legal request intended to freeze the ruling or enforcement action as a short-term measure.

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