Nevada Takes Legal Action Against Coinbase’s Prediction Markets

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Nevada gaming authorities have sued Coinbase, accusing the cryptocurrency exchange of running an unlicensed sports wagering operation. The lawsuit, filed in state court on Monday, centers on contracts that allow users to predict sports event outcomes.

In the filing, the Nevada Gaming Control Board requested the court to issue a temporary restraining order and a preliminary injunction against Coinbase. The order would prohibit the company from operating its prediction market and derivatives exchange for sports bets within the state.

The enforcement action arrives swiftly after Coinbase recently announced the nationwide launch of its prediction markets in partnership with Kalshi.

Although Kalshi is federally regulated by the US Commodity Futures Trading Commission, state-level authorities like the Nevada board are asserting their jurisdiction.