– The Nevada Gaming Control Board has filed a civil enforcement action against Coinbase for offering unlicensed sports and event contracts.
– Regulators seek to halt the platform’s operations in the state, citing violations of gambling age requirements and unfair competition.
– This move comes amid broader regulatory scrutiny of prediction markets across multiple U.S. states.
The Nevada Gaming Control Board (NGCB) has initiated legal action against Coinbase Financial Markets, accusing the cryptocurrency exchange of operating without a required state gaming license for its prediction market offerings.
In a filing dated February 2, 2026, in Carson City’s District Court, the NGCB alleges that Coinbase’s event-based contracts on sports and elections qualify as wagering under Nevada statutes NRS 463.0193 and 463.01962. The board is seeking a temporary restraining order and permanent injunction to prevent Coinbase from continuing these activities in the state.
Coinbase launched its prediction markets in late 2025 through a partnership with Kalshi, a CFTC-registered platform, allowing users to trade on outcomes of real-world events. However, Nevada regulators argue that these contracts, particularly those related to sports like college basketball and professional football, constitute unlicensed gambling. Additionally, the platform’s 18+ age requirement conflicts with Nevada’s 21+ rule for gambling activities.
This lawsuit highlights ongoing tensions between federal and state regulations in the crypto space. Coinbase has maintained that prediction markets fall under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC), not state gaming authorities. In response to similar actions in other states, Coinbase filed lawsuits against regulators in Connecticut, Michigan, and Illinois in December 2025.
Mike Dreitzer, chairman of the NGCB, emphasized the board’s commitment: “The Board takes seriously its obligation to operate a thriving gaming industry and to protect Nevada citizens.” On the other side, Coinbase’s vice president of litigation, Ryan VanGrack, called the suit a “state power grab” and a “manufactured emergency,” arguing it undermines federal oversight.
Analysts note potential risks for Coinbase, including operational disruptions and increased compliance costs. The case could set a precedent for how prediction markets are regulated, potentially affecting other platforms like Polymarket, which faced a similar temporary restraining order in Nevada recently. Balanced views suggest that while innovation in crypto derivatives is valuable, adherence to state laws is crucial to avoid consumer harm.
The action underscores the need for clear regulatory frameworks in the evolving crypto landscape, where tools like smart contracts enable new forms of trading but raise questions about KYC and consumer protection.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
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