Nevada Moves to Bar Coinbase’s Prediction Markets Without State Gaming License

The Nevada Gaming Management Board filed a civil enforcement motion in opposition to Coinbase Monetary Markets on Monday, searching for to dam the CFTC-registered alternate from providing event-based contracts on sports activities and elections to Nevada residents with out state gaming licenses.

Coinbase launched its prediction markets product to U.S. prospects final month by way of a partnership with Kalshi, a CFTC-registered designated contract market. 

The company filed each a grievance for everlasting injunction and declaratory reduction, alongside an software for an ex parte non permanent restraining order, within the District Courtroom for Carson Metropolis. 



“The board considers providing sports activities occasion contracts, or sure different occasion contracts, to represent wagering exercise beneath NRS 463.0193 and 463.01962 and, due to this fact, entities providing such occasion contracts have to be licensed,” in accordance with a assertion launched Tuesday.

The filings ask the courtroom to instantly halt Coinbase’s event-contract choices on its cellular app, saying the platform permits customers aged 18 and above to open accounts and commerce regardless of Nevada’s 21-year minimal age requirement for playing.

Decrypt has reached out to Coinbase for remark.

Coinbase operates a market providing event-based contracts on sporting occasions, together with faculty basketball, faculty {and professional} soccer video games, and elections, which the Board alleges represent wagering beneath Nevada legislation and require state licensing.

The Nevada motion comes simply weeks after Coinbase filed federal lawsuits in opposition to gaming regulators in Connecticut, Michigan, and Illinois, arguing that the CFTC holds unique jurisdiction over prediction markets and that state enforcement efforts “stifle innovation and violate the legislation.” 

These states issued cease-and-desist letters to prediction market platforms, alleging they have been engaged in sports activities wagering exercise with out correct licensing.

“The board takes critically its obligation to function a thriving gaming trade and to guard Nevada residents,” Nevada Gaming Management Board Chairman Mike Dreitzer stated in a assertion. “The motion taken yesterday reinforces this obligation.”

The board famous it’s struggling “critical, ongoing, irreparable hurt each day that Coinbase operates its market in violation of Nevada legislation.”

Nevada regulators say Coinbase’s operations create “a large and unfair aggressive benefit” over licensed sportsbooks that should pay licensing charges, taxes, preserve bodily areas, and adjust to strict client safety necessities.

Coinbase, nonetheless, maintains that prediction markets fall beneath federal jurisdiction within the lawsuit filed in opposition to the three states.

The Nevada motion follows comparable enforcement steps in opposition to prediction-market platforms, equivalent to Kalshi in March of final yr, and, extra lately, in opposition to Polymarket, the place a state courtroom issued a short lived restraining order blocking the platform from providing occasion contracts to Nevada residents for 2 weeks.

Nevada’s dispute with Kalshi started final March, when the Gaming Management Board issued a cease-and-desist order over its sports activities occasion contracts, adopted by a short injunction in Kalshi’s favor that was lifted in November, a choice the corporate is now interesting within the Ninth Circuit.

Final Saturday, Daniel Wallach, founder and principal of Wallach Authorized LLC, a legislation agency centered on sports activities wagering and gaming legislation, posted on X that a number of amicus teams, together with dozens of states and tribal organizations, filed briefs backing Nevada, whereas Kalshi obtained only one supporting amicus submitting from one in every of its personal traders.