The Nevada Gaming Control Board has filed a civil enforcement action against Coinbase Financial Markets, Inc., asking a state court to halt what regulators describe as unlicensed wagering activity offered through the crypto exchange’s prediction market products.
In filings submitted Monday to the First Judicial District Court of the State of Nevada in and for Carson City, the board requested declaratory relief, a temporary restraining order, and a preliminary injunction to stop Coinbase from offering event-based contracts to Nevada residents. The board said the products violate state gaming laws that require licensing for wagering activity.
According to a Feb. 3 press release, the board considers sports event contracts and certain other event contracts to constitute wagering under Nevada Revised Statutes 463.0193 and 463.01962. Under those provisions, entities that offer such contracts must hold a gaming license.
“The Board has deemed Coinbase’s operations to be unlawful in Nevada,” the release said.
Regulators cite unlicensed wagering and age requirements
The complaint targets Coinbase Financial Markets, a CFTC-registered Futures Commission Merchant that acts as an intermediary for customers who trade derivatives listed on a third-party designated contract market. Coinbase began offering prediction markets last month through a partnership with Kalshi, which holds federal approval from the U.S. Commodity Futures Trading Commission.
Nevada regulators argue that federal registration does not exempt Coinbase from state gaming law. The board said Coinbase’s mobile app allows users aged 18 and older to trade event contracts, despite Nevada’s 21-year minimum age requirement for gambling.
The filing states that Coinbase’s event-based markets include contracts tied to college and professional football, college basketball, and elections. The board said these offerings fall within Nevada’s legal definition of wagering and require state oversight.
The board alleged violations of NRS 463.160, NRS 463.350, NRS 465.086, and NRS 465.092.
Gaming board cites public policy concerns
Nevada Gaming Control Board Chairman Mike Dreitzer said the action reflects the state’s long-standing policy toward gambling regulation.
“The Board takes seriously its obligation to operate a thriving gaming industry and to protect Nevada citizens. The action taken yesterday reinforces this obligation,” Dreitzer said in a statement.
Nevada law frames gaming as an industry that plays a vital role in the state’s economy and general welfare. The legislature has stated that gambling must remain licensed, controlled, and assisted to protect public health, safety, morals, and good order.
In its filings, the board said it suffers serious and ongoing harm each day that Coinbase operates prediction markets without a Nevada license. Regulators also said the activity creates an unfair competitive advantage over licensed sportsbooks that comply with taxes, physical presence rules, and consumer protection standards.
Coinbase expands prediction markets nationwide
The Nevada action came days after Coinbase announced it had launched prediction markets in all 50 U.S. states through its partnership with Kalshi. Users can trade yes-or-no contracts tied to real-world outcomes directly inside the Coinbase app.
Coinbase has argued that prediction markets fall under federal jurisdiction. On Dec. 19, the company filed lawsuits against gaming regulators in Michigan, Illinois, and Connecticut, one day after its nationwide product launch. The lawsuits claim that state enforcement undermines national market consistency and conflicts with federal oversight by the CFTC.
Coinbase maintains that allowing states to impose separate rules creates fragmentation in regulated derivatives markets.
Prediction markets face growing state scrutiny
Nevada’s action against Coinbase follows similar enforcement efforts against other prediction market platforms. Last week, a Nevada court issued a temporary restraining order against Blockratize, the operator behind Polymarket, blocking event-based contracts in the state for two weeks.
Nevada also filed suit against Kalshi last year over sports event contracts. That case moved through multiple stages, including a brief injunction in Kalshi’s favor that was lifted in November. Kalshi has appealed the decision to the Ninth Circuit.
Daniel Wallach, founder of Wallach Legal LLC, said on X that dozens of states and tribal organizations filed amicus briefs in support of Nevada’s position in the Kalshi case. Kalshi received one supporting amicus brief from an investor, according to Wallach.
Five different groups filed amici curiae briefs in support of Nevada in the 9th Circuit appeal filed by Kalshi. Amici include 39 States, 24 Tribes and 12 tribal organizations (> 400 Tribes). By contrast, Kalshi had only 1 supporting amici brief -- from one of its own investors. pic.twitter.com/Yt87iW0IZT
— Daniel Wallach (@WALLACHLEGAL) February 1, 2026
The Nevada Gaming Control Board said its action against Coinbase fits within a broader effort to enforce state gaming law as prediction markets gain popularity across the United States.
For now, the court will decide whether Coinbase must suspend its event contract offerings in Nevada while the case proceeds.
Oleksii Shumak
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