Coinbase’s prediction markets draw fire from Nevada regulator over alleged unlicensed sports betting

The Nevada Gaming Control Board filed a civil lawsuit against Coinbase, seeking to stop the exchange from offering its prediction market products to Nevada residents, claiming they violate state law by constituting unlicensed sports betting. The lawsuit targets event-based contracts tied to sporting outcomes, which regulators argue fall under state gambling statutes regardless of labeling. This action follows Coinbase rolling out its prediction markets nationwide via a partnership with Kalshi. Coinbase has previously argued that these contracts are federally regulated event markets, not gambling, and has sued regulators in other states over similar enforcement attempts. Nevada is seeking a declaration that Coinbase's contracts violate state law and an injunction against offering them without a license. This case adds to broader regulatory scrutiny facing prediction market operators like Kalshi and Polymarket.

(Source：The Block)