The Nevada Gaming Control Board has filed a civil enforcement action against Coinbase Financial Markets for allegedly offering unlicensed bets on sports event contracts. In the application filed on Monday at the First Judicial District Court in Carson City, a temporary restraining order and preliminary injunction were requested to halt Coinbase’s operation of a derivatives exchange and prediction market related to sports betting. Board Chairman Mike Dreitzer emphasized the importance of the measure taken to protect Nevada citizens and strengthen the gaming industry.
Source: Nevada Gaming Control Board
Nevada Coinbase Lawsuit: Main Reasons
The lawsuit came a week after Coinbase launched a prediction market with Kalshi in all 50 US states. Although Kalshi is regulated at the federal level by the US Commodity Futures Trading Commission (CFTC), state regulators can create legal challenges. This is highlighted due to concerns that it threatens traditional betting areas like sports events.
- Unlicensed Operation: It is claimed that Coinbase did not obtain permission for sports contracts.
- Similar Examples: Temporary restriction on Polymarket in Nevada; warning letters from Tennessee to Kalshi, Polymarket, and Crypto.com.
- Coinbase Response: No official comment yet.
Regulatory Impact on BTC Market
This lawsuit is affecting the overall crypto ecosystem by increasing regulatory pressure on crypto-based prediction markets. As we see on our BTC detailed analysis pages, similar legal uncertainties can trigger BTC price volatility. State-level interventions are putting even CFTC-approved platforms in difficulty and may affect BTC futures volume.
Frequently Asked Questions About the Coinbase Nevada Lawsuit
Why did Nevada sue Coinbase?
Reason: Unlicensed sports betting and prediction market operation.
How will this lawsuit affect BTC?
Regulatory fears could reduce liquidity in crypto assets like BTC.
What’s happening in other states?
Tennessee sent a warning; similar lawsuits may come.
Source: https://en.coinotag.com/nevada-sues-coinbase-over-sports-betting
