Nevada Moves to Bar Coinbase’s Prediction Markets Without State Gaming License
The Nevada Gaming Control Board has filed a civil enforcement action against Coinbase Financial Markets, requesting a court order to stop the CFTC-registered exchange from offering event-based sports and election contracts to Nevada residents without state gaming licenses. Coinbase, through a partnership with Kalshi, recently began offering these prediction markets in the US. Nevada regulators argue that these offerings constitute gambling under state law, requiring state licensing and adherence to age restrictions that Coinbase does not currently follow. The Board claims Coinbase’s operations give it an unfair advantage over licensed sportsbooks that must pay fees, taxes, and comply with consumer protection rules. This action follows similar regulatory challenges against platforms like Kalshi and Polymarket and comes as Coinbase sues other states, asserting that prediction markets fall under federal CFTC jurisdiction rather than state law. Nevada regulators emphasize their responsibility to protect the state’s gaming industry and citizens, claiming ongoing irreparable harm from Coinbase’s unlicensed operations. The legal disputes have attracted widespread attention, with multiple states filing briefs supporting Nevada’s enforcement efforts.
