Nevada gaming regulators have taken legal action against Coinbase, alleging the crypto exchange offered unlicensed sports-related wagering products in the state. The lawsuit comes shortly after Coinbase announced the nationwide rollout of prediction markets, intensifying the debate over how these products should be regulated in the United States.
Nevada Gaming Control Board Enforcement Action
The Nevada Gaming Control Board filed a civil enforcement action in the First Judicial District Court in Carson City, accusing Coinbase Financial Markets of offering wagers on sports event contracts without proper state authorization. Regulators also asked the court to issue a temporary restraining order and a preliminary injunction that would bar Coinbase from operating derivatives exchanges or prediction markets tied to sporting events in Nevada.
Board officials said the move reflects their responsibility to protect consumers and maintain oversight of the state’s regulated gaming industry, which has some of the strictest wagering laws in the country.
Prediction Markets and Federal Oversight Tensions
The lawsuit follows Coinbase’s recent launch of prediction markets across all 50 states through a partnership with a federally regulated platform overseen by the Commodity Futures Trading Commission. While federal oversight applies at the national level, Nevada authorities argue that state gaming laws still govern sports wagering activities within their borders.
Nevada courts recently issued a similar restraining order against another prediction market operator, signaling a tougher stance on event-based betting platforms. These cases could set important precedents, potentially reshaping how prediction markets are regulated and clarifying the balance of power between state regulators and federal agencies.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.