Nevada Gaming Regulator Sues Coinbase Over Unlicensed Sports Betting Contracts

Nevada gaming regulators have moved to shut down Coinbase’s new sports prediction market platform, escalating a broader clash between state gambling laws and federally regulated event-contract platforms.

In a civil enforcement action filed Monday in Carson City, the Nevada Gaming Control Board accused Coinbase Financial Markets of offering unlicensed wagers on sporting events. 

The complaint asks the court for a temporary restraining order and preliminary injunction that would bar Coinbase from “operating a derivatives exchange and prediction market” tied to sports betting for Nevada residents.

The Board takes seriously its obligation to operate a thriving gaming industry and to protect Nevada citizens. The action taken yesterday reinforces this obligation.

Mike Dreitzer, Chairman of the Nevada Gaming Control Board.

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Another Prediction Platform, Another Lawsuit

The move comes days after Coinbase announced it was rolling out prediction markets across all 50 US states through a partnership with Kalshi, a federally regulated event-contract exchange overseen by the U.S. Commodity Futures Trading Commission (CFTC). 

Federal oversight does not preempt state gambling law, however, and state regulators can still treat such products as illegal sports wagering if they lack a local license.

Nevada has already taken similar action against another player in the space. Last week, a state court granted a temporary restraining order against a Polymarket operator, blocking it from offering event-based contracts to Nevada users. The judge cited “immediate” and “irreparable” harm to the state’s ability to enforce its licensing regime.

Coinbase and Polymarket now join Kalshi in facing mounting legal challenges at the state level. In December, seven users filed a class-action lawsuit against Kalshi, alleging it illegally offered sports wagers and misled customers about how its markets function, with plaintiff firm Lieff Cabraser Heimann & Bernstein leading the case.

Massachusetts Attorney General Andrea Joy Campbell also secured a preliminary injunction against Kalshi, prohibiting it from offering sports-related event contracts in the state unless it obtains a sports betting license.

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