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

Mars Finance News: The Nevada Gaming Control Board has filed a civil enforcement lawsuit in the First Judicial District Court of Nevada, accusing Coinbase of offering unlicensed sports event contract betting services through its Coinbase Financial Markets division. The documents show that the regulatory agency also requested 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 aims to fulfill regulatory responsibilities and protect 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 across all 50 states. Although Kalshi is regulated at the federal level by the U.S. Commodity Futures Trading Commission, state regulators can still pursue legal challenges against related activities. Additionally, Nevada has recently taken similar action against Polymarket, with a court previously approving a temporary restraining order to prevent it from offering event-based contract betting to residents within the state. These cases are also seen as potentially challenging federal authority over prediction market regulation.