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

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 regulator is also requesting 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 move aims to fulfill regulatory responsibilities and protect the order of the local gaming industry as well as the interests of residents in the state. 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 Commodity Futures Trading Commission, state-level regulators can still challenge related businesses legally.

Additionally, 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 residents in the state. The related cases are also seen as potentially challenging the federal regulatory authority over prediction markets.