Gaming authorities seek injunction to halt platform’s prediction markets on sporting events.
The Nevada Gaming Control Board has initiated civil action against Coinbase Financial Markets for offering betting on sporting events without the necessary licenses. The lawsuit was filed Monday at the First Judicial District Court of the State of Nevada in Carson City.
Authorities have asked the court to grant a temporary restraining order and preliminary injunction to prevent Coinbase from “operating a derivatives exchange and prediction market” related to sports betting. The legal action comes less than a week after Coinbase announced the launch of prediction markets in all 50 U.S. states through a partnership with Kalshi.
“The Board takes seriously its obligation to operate a thriving gaming industry and protect Nevada citizens,” said Mike Dreitzer, chairman of the Nevada Gaming Control Board. “The action taken yesterday reinforces this obligation,” he added in a Tuesday statement.
The case highlights tensions between federal and state regulation in the prediction markets sector. While the US Commodity Futures Trading Commission oversees Kalshi at the federal level, the platform can still face legal challenges from state regulators, including Nevada’s.
Polymarket is facing similar legal challenges in Nevada. Last week, a Nevada court granted a temporary restraining order against a Polymarket operator, blocking the platform from offering betting on event-based contracts to state residents. The judge overseeing the case cited “immediate” and “irreparable” harm to authorities’ ability to regulate unlicensed betting.
