The Nevada Gaming Control Board has launched a civil enforcement action against Coinbase Financial Markets, accusing the crypto firm of offering unlicensed wagers tied to sporting events. In filings Monday in the First Judicial District Court of Nevada in Carson City, the Board asked a judge to issue a temporary restraining order and a preliminary injunction to stop Coinbase from “operating a derivatives exchange and prediction market” linked to sports betting.
Mike Dreitzer, chair of the Nevada Gaming Control Board, said the agency takes seriously its responsibility to maintain a robust gaming industry and protect Nevada residents, and that the lawsuit underscores that duty.
The action follows Coinbase’s announcement that it rolled out prediction markets across all 50 U.S. states through a partnership with Kalshi. While Kalshi is regulated at the federal level by the U.S. Commodity Futures Trading Commission (CFTC), Nevada and other state regulators maintain the ability to bring enforcement actions under state law.
Cointelegraph sought comment from a Coinbase spokesperson but had not received a response by the time of publication.
Last week, a Nevada court granted a temporary restraining order against a Polymarket operator, prohibiting the platform from offering event-based contracts to Nevada residents. The judge in that case cited “immediate” and “irreparable” harm to the regulators’ capacity to oversee betting activity conducted without a state license.
The disputes involving Coinbase and Polymarket, along with similar state actions, may set up a broader test of the CFTC’s authority to regulate prediction platforms like Kalshi and Polymarket absent clearer statutory direction.
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