The Nevada Gaming Control Board has filed a civil enforcement action against Coinbase Financial Markets, seeking to block the CFTC-registered exchange from offering event-based contracts on sports and elections to state residents. The complaint, filed Monday, alleges these contracts constitute illegal gambling under Nevada law without a state license. The action follows similar state-level enforcement against prediction market platforms like Polymarket and Kalshi, setting up a jurisdictional clash with Coinbase’s claim that such markets are under exclusive federal oversight.
Coinbase is facing a new legal challenge from Nevada gaming authorities. The Nevada Gaming Control Board filed a complaint for permanent injunction and declaratory relief against the exchange this week.
The board alleges that Coinbase’s market for contracts on sports and elections constitutes wagering under state law. It stated the activity requires a Nevada gaming license, which the platform does not possess.
Chairman Mike Dreitzer said the action reinforces the agency’s obligation. “The board takes seriously its obligation to operate a thriving gaming industry and to protect Nevada citizens,” he stated.
The filings also seek an immediate temporary restraining order. They argue the platform’s operations give it an unfair advantage over licensed, tax-paying Nevada sportsbooks.
Coinbase launched its prediction markets product last month through a partnership with Kalshi. This Nevada enforcement follows cease-and-desist letters from regulators in Connecticut, Michigan, and Illinois.
Coinbase has already sued those three states in federal court. The exchange argues the Commodity Futures Trading Commission holds exclusive jurisdiction over such prediction markets.
The board contends it suffers “serious, ongoing, irreparable harm” from the platform’s operations. It also noted the platform allows users aged 18 and above, violating Nevada’s 21-year minimum age for gambling.
This action follows similar steps against other prediction platforms. The board issued a cease-and-desist order against Kalshi last March and recently secured a temporary restraining order against Polymarket.
