Nevada Files Legal Action Against Coinbase Over $400K Prediction Markets
Nevada regulators have filed a new legal complaint against Coinbase to stop the crypto exchange from offering prediction...
Quick overview
- Nevada regulators have filed a legal complaint against Coinbase to halt its offering of prediction markets in the state, citing a lack of necessary licenses.
- The complaint argues that Coinbase's event-based contracts resemble betting and should be regulated under state gaming laws, as they allow users as young as 18 to trade.
- Coinbase is also facing lawsuits in multiple states, asserting that only the CFTC should oversee prediction markets, while regulators emphasize the need for consumer protection and fair competition.
- The case reflects a broader crackdown on prediction market operators, with other platforms like Polymarket and Kalshi also facing scrutiny and enforcement actions.
Nevada regulators have filed a new legal complaint against Coinbase to stop the crypto exchange from offering prediction markets in the state. On Monday, the Nevada Gaming Control Board filed a civil enforcement case in Carson City, asking for a permanent injunction, declaratory relief, and a temporary restraining order.
Authorities say Coinbase is offering event-based contracts tied to sports and elections without the licenses required by state law. Last month, the company launched its US prediction market through a partnership with Kalshi, which is regulated by the Commodity Futures Trading Commission (CFTC).
Nevada officials argue these contracts are similar to betting, so they should be regulated under state gaming laws instead of federal rules for derivatives. The complaint also points out that Coinbase lets users as young as 18 trade, which is below Nevada’s legal gambling age of 21.
Regulators say this practice causes “irreparable harm” and gives Coinbase an unfair advantage over licensed sportsbooks, which must follow strict rules on compliance, taxes, and where they operate.
🇺🇸 JUST IN: Nevada Gaming Control Board files civil enforcement action against Coinbase over alleged unlicensed wagering in Nevada. pic.twitter.com/zKaYB9W37u
— Cointelegraph (@Cointelegraph) February 3, 2026
Broader Legal Clash Across States
Coinbase is also fighting lawsuits against regulators in Connecticut, Michigan, and Illinois. The company argues that only the CFTC should oversee prediction markets and that state actions unfairly limit financial innovation.
Several states have already sent cease-and-desist notices, accusing crypto prediction platforms of running unlicensed sports betting. Nevada says its enforcement is meant to protect consumers and keep the state’s gaming industry fair.
Board chairman Mike Dreitzer stressed that regulation is important as digital betting products become more common.
Rising Scrutiny of Prediction Platforms
Nevada’s case is part of a larger effort to crack down on prediction market operators:
- A state court recently blocked Polymarket from offering contracts to Nevada residents for two weeks.
- Kalshi has also faced enforcement over sports-related contracts, and that dispute is now being appealed.
- Kalshi has expanded into Washington, D.C., and hired political strategist John Bivona as its first federal government relations lead.
- Congress is considering legislation, supported by more than 30 House Democrats including former Speaker Nancy Pelosi, to limit official interactions with prediction markets.
High-profile bets have raised concerns among regulators. For example, a Polymarket contract related to Nicolás Maduro jumped from $32,000 to over $400,000 just before his detention, showing why federal and state officials are watching these platforms closely.
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