- Nevada regulators sued Coinbase on February 2, 2026, to dam its new sports activities prediction markets, alleging the platform gives unlicensed playing.
- The state not too long ago received an identical battle in opposition to Polymarket, which was compelled to geo-block Nevada customers after a decide dominated that federal oversight doesn’t override state playing legal guidelines.
- Coinbase argues it’s a federally regulated trade by way of its associate Kalshi, however states like Massachusetts and Tennessee have already joined Nevada in issuing bans.
Nevada gaming regulators have moved to close down Coinbase’s new sports activities prediction market platform, escalating a broader conflict between state playing legal guidelines and federally regulated event-contract platforms.
In a civil enforcement motion filed Monday in Carson Metropolis, the Nevada Gaming Management Board accused Coinbase Monetary Markets of providing unlicensed wagers on sporting occasions.
The criticism asks the court docket for a short lived restraining order and preliminary injunction that might bar Coinbase from “working a derivatives trade and prediction market” tied to sports activities betting for Nevada residents.
The Board takes severely its obligation to function a thriving gaming trade and to guard Nevada residents. The motion taken yesterday reinforces this obligation.
Learn extra: Is Quantum Uncertainty Cracking Bitcoin’s Store-of-Value Narrative?
One other Prediction Platform, One other Lawsuit
The transfer comes days after Coinbase introduced it was rolling out prediction markets throughout all 50 US states by way of a partnership with Kalshi, a federally regulated event-contract trade overseen by the U.S. Commodity Futures Buying and selling Fee (CFTC).
Federal oversight doesn’t preempt state playing regulation, nonetheless, and state regulators can nonetheless deal with such merchandise as unlawful sports activities wagering in the event that they lack an area license.
Nevada has already taken comparable motion in opposition to one other participant within the house. Final week, a state court docket granted a short lived restraining order in opposition to a Polymarket operator, blocking it from providing event-based contracts to Nevada customers. The decide cited “quick” and “irreparable” hurt to the state’s skill to implement its licensing regime.
Coinbase and Polymarket now be a part of Kalshi in going through mounting authorized challenges on the state degree. In December, seven customers filed a class-action lawsuit in opposition to Kalshi, alleging it illegally provided sports activities wagers and misled clients about how its markets perform, with plaintiff agency Lieff Cabraser Heimann & Bernstein main the case.
Massachusetts Legal professional Common Andrea Pleasure Campbell additionally secured a preliminary injunction in opposition to Kalshi, prohibiting it from providing sports-related occasion contracts within the state until it obtains a sports activities betting license.
Associated: US Sanctions Blacklist UK Crypto Exchanges Over Iran-Linked Activity
The submit Nevada Gaming Regulator Sues Coinbase Over Unlicensed Sports Betting Contracts appeared first on Crypto News Australia.