Nevada's regulatory landscape is heating up for cryptocurrency platforms, as the state's Gaming Control Board takes decisive action against major players for allegedly engaging in unlicensed sports event betting.
Coinbase Faces Nevada Enforcement Action
The Nevada Gaming Control Board (NGCB) has filed a civil enforcement action against Coinbase Financial Markets, accusing the company of operating an unlicensed sports betting derivatives exchange and prediction market within the state. Filed in the First Judicial District Court, the lawsuit seeks a temporary restraining order and a preliminary injunction to halt Coinbase's operations related to sports betting. NGCB Chairman Mike Dreitzer emphasized the board's commitment to maintaining a robust gaming industry and protecting Nevada's citizens, underscoring the seriousness of this regulatory move.
A Growing Challenge to Prediction Markets
This legal challenge against Coinbase follows closely on the heels of its announcement to launch prediction markets across all 50 U.S. states through a partnership with Kalshi. While the U.S. Commodity Futures Trading Commission (CFTC) oversees Kalshi at a federal level, Nevada's action highlights a critical jurisdictional clash, demonstrating that state regulators can still challenge these platforms. The situation mirrors a recent case involving Polymarket, where a Nevada court issued a temporary restraining order against the platform for offering event-based betting contracts without a license, citing "immediate" and "irreparable" harm. These state-level interventions against platforms like Coinbase and Polymarket could significantly impact the CFTC's authority over prediction markets in the absence of comprehensive federal legislation.
