Nevada regulators sue Coinbase, accusing it of offering unlicensed sports betting contracts.

According to Mars Finance, the Nevada Gaming Control Board has filed a civil enforcement lawsuit in the First Judicial District Court of Nevada, accusing Coinbase of offering unlicensed sports betting services through its Coinbase Financial Markets division. The filing shows that the regulator is also requesting a temporary restraining order and a preliminary injunction, requiring Coinbase to cease "operating a sports betting-related derivatives exchange and prediction market" in Nevada. Mike Dreitzer, chairman of the Nevada Gaming Control Board, stated that this move aims to fulfill regulatory responsibilities and protect the local gaming industry and the interests of state residents. This lawsuit comes less than a week after Coinbase announced its partnership with Kalshi to launch prediction market services in all 50 states. Although Kalshi is regulated federally by the Commodity Futures Trading Commission (CFTC), state regulators can still challenge related businesses. Furthermore, Nevada recently took similar action against Polymarket, for which a court previously granted a temporary restraining order prohibiting it from offering event-based betting services to state residents. These cases are also seen as potential challenges to federal-level prediction market regulatory authority.