Nevada regulators sue Coinbase, accusing it of offering unlicensed sports betting contracts

2026-02-04 00:31:19

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

The documents show that the regulatory agency is also requesting the court to issue a temporary restraining order and preliminary injunction, requiring Coinbase to cease “operating derivatives exchanges and prediction markets related to sports betting” in Nevada. Mike Dreitzer, Chairman of the Nevada Gaming Control Board, stated that this move is aimed at fulfilling regulatory responsibilities and protecting the local gaming industry and residents’ interests.

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

Additionally, Nevada has recently taken similar action against Polymarket, with the court previously approving a temporary restraining order to prevent it from offering event-based contract betting to residents within the state. This case is also seen as potentially challenging federal-level regulation of prediction markets. (Cointelegraph)

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