The enforcement action over wagers on sports event contracts followed Coinbase announcing the launch of prediction markets in all 50 US states.
The Nevada Gaming Control Board announced that it had filed a civil enforcement action against Coinbase over wagers on sports event contracts.
In Monday filings in the First Judicial District Court of the State of Nevada in and for Carson City, the Nevada Gaming Control Board sued Coinbase Financial Markets over allegations the company offered unlicensed wagers on sporting events. Authorities followed by requesting that the court grant a temporary restraining order and preliminary injunction preventing Coinbase from “operating a derivatives exchange and prediction market” related to sporting bets.
“The Board takes seriously its obligation to operate a thriving gaming industry and to protect Nevada citizens,” said Mike Dreitzer, chair of the Nevada Gaming Control Board, in a Tuesday statement. “The action taken yesterday reinforces this obligation.”
Source: Nevada Gaming Control BoardThe action came less than a week after Coinbase announced it had launched prediction markets in all 50 US states as part of a partnership with Kalshi. While the US Commodity Futures Trading Commission oversees Kalshi at the federal level, the platform can still face legal challenges filed by state-level regulators, including Nevada’s.
Related: Tennessee sends cease-and-desist letters to Kalshi, Polymarket, Crypto.com
Cointelegraph reached out to a Coinbase spokesperson for comment, but had not received a response at the time of publication.
Polymarket faces similar legal challenges in Nevada
Last week, a Nevada court granted a temporary restraining order against a Polymarket operator, blocking the platform from offering bets on event‑based contracts to state residents. The judge overseeing the case cited “immediate” and “irreparable” harm to authorities’ ability to regulate betting without a license.
The Coinbase and Polymarket cases and others like it at the state level could challenge the CFTC’s authority to regulate prediction platforms like Kalshi and Polymarket without clear laws.
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Source: https://cointelegraph.com/news/nevada-enforcement-action-coinbase-wagering?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
