Nevada Regulator Sues Coinbase, Alleging Unlicensed Sports Betting Contracts

Odaily News The Nevada Gaming Control Board has filed a civil enforcement lawsuit in the First Judicial District Court of Nevada, alleging that Coinbase, through its Coinbase Financial Markets division, offered unlicensed sports event contract betting services.

The documents show that the regulator also requested the court to issue a temporary restraining order and a preliminary injunction, requiring Coinbase to cease "operating a derivatives exchange and prediction market related to sports betting" in Nevada. Mike Dreitzer, Chairman of the Nevada Gaming Control Board, stated that this action aims to fulfill regulatory duties and protect the order of the local gaming industry and the interests of residents within the state.

This lawsuit was filed less than a week after Coinbase announced its partnership with Kalshi to launch prediction market services across all 50 U.S. states. Although Kalshi is regulated at the federal level by the U.S. Commodity Futures Trading Commission, state-level regulators can still initiate legal challenges against related operations.

Furthermore, Nevada has recently taken similar action against Polymarket, with the court previously approving a temporary restraining order prohibiting it from offering event-based contract betting to state residents. The related case is also seen as potentially challenging federal-level regulatory authority over prediction markets. (Cointelegraph)