Summary
- A Nevada court in the US said it issued a preliminary injunction ordering Blockratize, operator of the prediction-market platform Polymarket, to temporarily suspend services for Nevada residents.
- The Nevada court, accepting a request from the Nevada Gaming Control Board, issued a temporary restraining order (TRO) banning for two weeks the offering of sports and event contracts (betting products) to Nevada residents.
- The court found that the Commodity Exchange Act does not grant the CFTC exclusive jurisdiction over Polymarket’s contracts, raising the possibility that state gambling regulations could apply.
Forecast Trend Report by Period
A Nevada court in the US has issued a preliminary injunction ordering Blockratize, operator of the prediction-market platform Polymarket, to temporarily suspend providing services to state residents.
According to Decrypt on the 2nd (local time), the Nevada court recently issued a temporary restraining order (TRO) barring Blockratize, Polymarket’s operator, for two weeks from offering sports and event contracts (betting products) to Nevada residents. The decision accepted a request from the Nevada Gaming Control Board.
Judge Jason Woodbury ruled that the Commodity Exchange Act does not grant the Commodity Futures Trading Commission (CFTC) exclusive jurisdiction over Polymarket’s contracts. This rejects Polymarket’s long-standing argument that its contracts are federally regulated commodities and therefore not subject to state gambling regulations.
As a result, Polymarket will be unable to offer sports, political and social-event contracts to users in Nevada for at least two weeks. If state jurisdiction is upheld in the merits case, the regulatory dispute could spread to other US states. The market views the ruling as a case that has brought the “federal regulation vs. state gambling regulation” clash surrounding prediction markets squarely into the spotlight.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
