Catenaa, Sunday, February 08, 2026-Coinbase is facing a civil lawsuit from Nevada’s Gaming Control Board, which alleges the crypto exchange offered unlicensed sports betting through its prediction market products in violation of state law.
The suit seeks to stop Coinbase’s event-based contracts tied to sporting outcomes, arguing that such contracts constitute wagering that requires a state gaming license.
The filing comes weeks after Coinbase rolled out its prediction markets nationwide through a partnership with Kalshi. Nevada regulators contend that sports-linked contracts fall under state gambling statutes regardless of their structure or labeling.
Coinbase maintains the contracts are federally regulated event markets overseen by the Commodity Futures Trading Commission, not traditional gambling.
The exchange has previously challenged enforcement actions in Michigan, Illinois, and Connecticut, arguing state gaming rules conflict with federal commodities law.
The Nevada filing seeks a court declaration that the contracts violate state law and an injunction barring their offering to Nevada residents without a license.
The lawsuit highlights ongoing regulatory challenges for prediction market operators. Kalshi recently secured a temporary block on a Tennessee order targeting sports contracts, while Polymarket has faced restrictions in the U.S. and overseas.
Despite regulatory pushback, prediction markets continue to expand, with Polymarket integrating with Solana, Kalshi opening a Washington office, and platforms like Crypto.com and Hyperliquid launching event-based products
