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Nevada Sues Coinbase to Halt Prediction Markets Over Unlicensed Wagering

The case tests state gambling rules against Coinbase’s claim that federally regulated event contracts fall under CFTC jurisdiction.

Overview

  • The Nevada Gaming Control Board filed a civil enforcement case in Carson City District Court seeking a permanent injunction, declaratory relief, and an ex parte temporary restraining order against Coinbase’s event-contract offerings to state residents.
  • The Board argues that sports and certain other event contracts constitute wagering under NRS 463.0193 and 463.01962, which requires a Nevada gaming license.
  • Regulators say Coinbase’s app permits trading by users 18 and older, conflicting with Nevada’s 21-year minimum gambling age.
  • Coinbase launched prediction markets last month through a partnership with Kalshi, a CFTC-registered designated contract market, and has sued regulators in Connecticut, Michigan, and Illinois asserting federal preemption.
  • Nevada cites consumer-protection and competitive concerns and points to recent actions against Kalshi and a two-week temporary restraining order against Polymarket.