The legal landscape for sports betting and prediction markets is evolving, as evidenced by recent actions taken against Polymarket, a platform offering event-based contracts on various outcomes, including sports. Last week, a Carson City district judge issued a temporary restraining order that bars Polymarket from offering its sports prediction contracts in Nevada, particularly impacting this weekend’s Super Bowl LX. This ruling follows a civil enforcement action initiated by the Nevada Gaming Control Board against Blockratize, Polymarket’s platform provider.
District Judge Jason Woodbury noted that, at this stage in the proceedings, Polymarket is not licensed to conduct sports betting in Nevada, setting a precedent for the ongoing struggle between traditional sports betting and the emergence of prediction markets. Predominantly regulated by federal agencies, prediction markets are gaining traction across all states, allowing users to place wagers on various events, including sports and politics.
The state is ramping up its legal efforts, as shown by a similar lawsuit filed against Coinbase to prevent unlicensed sports wagering through its platform. Nevada’s gaming regulators previously issued cease-and-desist letters to other companies like Kalshi and Crypto.com, indicating a shift from softer legal actions to a more assertive enforcement strategy. A federal court ruling from November ordered Kalshi to cease offering sports contracts in Nevada, while Robinhood has also chosen to stop promoting such contracts pending further legal decisions.
Despite the setbacks for prediction markets in Nevada, sports betting remains a popular pastime. The American Gaming Association (AGA) projected that over $1.76 billion would be wagered legally on this year’s Super Bowl, reinforcing the continuing demand for sports wagering options. However, surveys indicate that 78 percent of prediction market users feel state regulators could play a critical role in resolving disputes relating to contract outcomes, highlighting a need for clarity and regulation in this rapidly evolving area.
In the broader context of gaming in Nevada, MGM Resorts CEO Bill Hornbuckle expressed optimism about the future of Las Vegas, emphasizing that despite recent challenges in tourism and gaming revenues, the area is on stable ground with a record number of conventions planned. Meanwhile, Boyd Gaming CEO Keith Smith reflected on past decisions that have shaped the company’s trajectory, including the cancellation of the Echelon project, which turned out to be a wise choice amid economic uncertainty.
As the legal dynamics between prediction markets and traditional sports betting continue to unfold, the industry remains vibrant, with stakeholders expressing hope for a brighter future in gaming, underscored by the resilience of Las Vegas as a premier destination.