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Nevada gaming authorities have filed a lawsuit against Coinbase alleging it offered unlicensed wagers on sports event contracts through its recently launched prediction markets.
The enforcement action followed Coinbase announcing the rollout of prediction markets across all 50 US states, prompting regulators to intervene over alleged violations of state gambling laws.
The Nevada Gaming Control Board said it filed a civil action in Carson City seeking a temporary restraining order and injunction to stop Coinbase from operating sports-related derivatives and prediction markets.
“The Board takes seriously its obligation to operate a thriving gaming industry and to protect Nevada citizens,”
Said Nevada Gaming Control Board, chair Mike Dreitzer.
The lawsuit names Coinbase Financial Markets and comes despite the company’s partnership with Kalshi, which is regulated at the federal level by the Commodity Futures Trading Commission.
State-level challenges have also targeted rival platforms, with a Nevada court last week blocking Polymarket from offering event-based betting contracts to residents.
The cases could test the limits of federal oversight of prediction markets and raise questions over whether the CFTC can regulate such platforms without clearer state and federal laws.