Nevada’s top gaming regulator has filed a civil enforcement lawsuit accusing Coinbase of running unlicensed wagering in the state. The Nevada Gaming Control Board (NGCB) says Coinbase offered sports event contracts that count as betting under state law.
According to the NGCB, these contracts let users stake money on the outcomes of real‑world sports events. The Board argues that this fits Nevada’s definition of gambling, so any operator must first obtain a state gaming license.
Details Of The Nevada Lawsuit And Requested Court Orders
The complaint targets Coinbase Financial Markets and was filed in Nevada’s First Judicial District Court in Carson City. Regulators say Coinbase offered sports contracts through its mobile app to Nevada residents without local approval.
In its filing and press statement, the NGCB asked the court for a temporary restraining order and a preliminary injunction. If granted, those orders would force Coinbase to stop operating what Nevada calls a derivatives exchange and prediction market related to sports betting inside the state.
Board chair Mike Dreitzer said the action is intended to protect Nevada’s regulated gaming industry and residents. He highlighted that state legislation required gaming to be “licensed, controlled, and assisted” to defend the public and the local economy.
Coinbase’s Position And Federal Oversight Question
Coinbase has framed these products as federally regulated financial derivatives rather than state‑level gambling. The contracts are part of a prediction‑style offering linked to a partner platform that is regulated by the U.S. Commodity Futures Trading Commission (CFTC).
The Nevada action was brought less than a week after Coinbase announced that its prediction market services, powered by Kalshi, would be available across all 50 U.S. states. While Kalshi operates under CFTC oversight, Nevada’s complaint claims that federal registration does not nullify state gaming laws.
Legal observers believe this conflict underscores an unanswered question: when does a crypto or derivatives product constitute gambling under state law, even if a federal regulator regulates part of it? The outcome could affect other services that blur the line between trade and betting.
Nevada has recently taken similar steps against other event‑driven platforms, including the prediction-market platform Polymarket. In that case, a Nevada court already granted a temporary restraining order blocking unlicensed event‑based contracts for state residents.
READ MORE: Buterin Says Ethereum L2 Vision Must Evolve as Base Layer Scales
