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Nevada state court issues temporary restraining order against Polymarket

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Read/Write Web 

A temporary restraining order (TRO) has been issued against Polymarket in Nevada.

Judge Jason Woodbury ruled that Polymarket must be temporarily excluded from state contracts and sided with regulators who argue that prediction markets offering event contracts must comply with state gaming law.

Polymarket faces TRO

Nevada has proven to be a key battleground in the disagreements between federally licensed entities like Polymarket, regulators, and traditionally licensed gambling entities.

We reported that Kalshi and Crypto.com (Crypto) have also been barred from entering into sports contracts in Nevada following lengthy court battles.

Polymarket won a brief delay in the proceedings, leading many to believe this would be a saving grace for the predictions provider.

Now, Polymarket has faced the same legal challenge as Kalshi and Crypto before Judge Woodbury in the First Judicial District Court of the State of Nevada, Carson City.

Judge Woodbury stated that “The question of federal preemption in this regard is nuanced and rapidly evolving. At the moment, the balance of convincing legal authority weighs against federal preemption in this context.”

The TRO is a time-limited decision (14 days) and would, in normal circumstances, preserve the status quo pending a ruling on a preliminary injunction, but all is not well for Shane Coplan’s company on the West Coast.

“The resulting harm in evasion of Nevada’s ‘comprehensive regulatory structure’ and ‘strict licensing standards’ is immediate, irreparable, and not sufficiently remediable by compensatory damages,” continued Judge Woodbury in his decision.

Wallach states that Polymarket is done in Nevada

Eagle-eyed gambling commentator and pundit Daniel Wallach was again at the forefront of the news coming out of the Sin City state around Polymarket’s fate on X.

Wallach posted to LinkedIn, highlighting Judge Woodbury’s comments, “The Board (NGCB) has a statutory duty to protect the public and advance Nevada’s interest in administering a reputable gaming industry with integrity. An unlicensed participant beyond the Board’s control, such as Polymarket, obstructs the Board’s ability to fulfill its statutory functions.”

He followed up on X, stating, “It’s official. Polymarket exits Nevada.” and then posted images of both a public statement from Polymarket and the restrictions on their servies in the state on certain sports contract lines.

“On January 29, 2026, a Nevada state court issued a temporary order requiring Polymarket US to stop offering trading in Nevada for fourteen days pending the court’s decision on whether to issue a preliminary injunction. Polymarket US is challenging this temporary order in court. We love building with you, and we hope to continue doing so in the near future, reopening access as soon as we’re allowed to do so,” read the statement.

Featured image: Polymarket.

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