Key Highlights
- The Nevada Gaming Control Board has filed a lawsuit against Coinbase in the Carson City District Court
- In the lawsuit, the regulator accused Coinbase of running an unlicensed sports wagering service
- Nevada regulators argue that the sports event contracts are illegal activity, while Coinbase affirmed that they are federally regulated financial derivatives under the CFTC jurisdiction
The Nevada Gaming Control Board has filed a civil lawsuit against the cryptocurrency exchange Coinbase. The action was filed in Carson City District Court on February 2, 2026.
“Nevada Gaming Control Board Files Civil Enforcement Action Against Coinbase”
Press release from NGCB: pic.twitter.com/mSSN6NlOZO
— Daniel Wallach (@WALLACHLEGAL) February 3, 2026
The state regulator has accused Coinbase of running an unlicensed sports prediction service. This lawsuit is related to the exchange’s new prediction markets feature, which allows users to trade contracts on sports outcomes.
“The Board takes seriously its obligation to operate a thriving gaming industry and to protect Nevada citizens. The action taken yesterday reinforces this obligation,” Chairman of the Nevada Gaming Control Board Mike Dreitzer, stated in the press release.
The Nevada Gaming Control Board, or NGCB, states that these sports event contracts are a form of wagering under Nevada state law.
These laws require any entity that offers such services to first obtain a state gaming license. The NGCB mentioned that Coinbase is conducting an illegal business by offering these contracts without a license.
The lawsuit is demanding a quick court intervention. The NGCB has asked the judge for a temporary restraining order and a preliminary action.
If this happens, this would force Coinbase to stop offering its prediction market services to residents of Nevada.
However, the board did not send a warning letter first. Instead, they decided to take direct legal action.
“Nevada’s public policy, as expressed by the Legislature, is that the gaming industry is vitally important to the economy of the state and the general welfare of the inhabitants and therefore must be licensed, controlled, and assisted to protect the public health, safety, morals, good order, and general welfare of the inhabitants of the state,” stated in the press release.
Coinbase Again Falls into Legal Trouble
Coinbase launched its prediction markets in late 2025 after announcing its partnership with platforms like Kalshi.
The exchange affirmed that these event contracts are regulated financial derivatives under the authority of the federal Commodity Futures Trading Commission (CFTC).
However, several state regulators refused to agree with his statement. Coinbase has already filed its own lawsuits against gaming authorities in Connecticut, Illinois, and Michigan. The purpose of those legal cases is to establish that federal law overrules state rules statutes in this prediction market area.
Courts in Nevada and Maryland have previously ruled in favor of state oversight in cases involving other prediction market platforms like Polymarket and Kalshi. In fact, the NGCB successfully secured a temporary restraining order against Polymarket in early 2026.
The company has not yet made a formal public statement on this specific filing. However, Coinbase’s chief legal officer has consistently argued that prediction markets are financially innovative tools. He affirmed that this sector should not be regulated by a framework of different state rules.
This new lawsuit also shows that there is still regulatory ambiguity for crypto-based platforms in the United States. As cryptocurrency companies expand into new products like prediction markets with federal approval, they are facing regulatory challenges from states with already existing regulations.
Nevada, home to Las Vegas, is particularly motivated to defend its licensing system and the economic benefits it generates.
Also Read: Crypto.com Launches OG, a CFTC-Regulated U.S. Prediction Market App
