Yeliz Akmaca 
Regulatory pressure on the US crypto market is intensifying. The Nevada Gaming Control Board has filed a civil enforcement lawsuit against Coinbase, alleging the company offered unlicensed wagers tied to sports event contracts. The move comes just days after Coinbase announced the nationwide launch of prediction markets in partnership with Kalshi.
Nevada regulators are seeking a temporary restraining order and preliminary injunction to immediately halt Coinbase’s sports-related derivatives and prediction market operations within the state.
Nevada Gaming Control Board: “Unlicensed Wagering Will Not Be Tolerated”
On Monday, the Nevada Gaming Control Board filed suit in the First Judicial District Court of Nevada in Carson City against Coinbase Financial Markets. The complaint alleges the company operated sports event contracts that effectively function as unlicensed betting products for Nevada residents.
In its court filing, the Board asked judges to order:
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An immediate suspension of Coinbase’s sports event contracts
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A halt to its derivatives exchange and prediction market activities
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A block on access for Nevada residents
Nevada Gaming Control Board Chair Mike Dreitzer said in a Tuesday statement:
“The Board takes seriously its obligation to operate a thriving gaming industry and to protect Nevada citizens. The action taken yesterday reinforces this obligation.”
The message from state regulators was clear: crypto-based sports wagering without proper licensing will face swift enforcement.
Coinbase 50-State Expansion Triggers Legal Pushback
The enforcement action followed Coinbase’s announcement that it had launched prediction markets across all 50 US states through a partnership with Kalshi.
While Kalshi operates under federal oversight from the US Commodity Futures Trading Commission (CFTC), state authorities maintain they still hold jurisdiction over sports betting activities conducted within their borders.
Nevada officials argue that sports-based event contracts fall squarely under traditional gambling regulations, meaning Coinbase cannot legally offer them without a state gaming license.
At the center of the dispute is a growing regulatory conflict:
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The CFTC oversees prediction markets at the federal level
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States claim authority over sports wagering
This jurisdictional overlap is now becoming a major fault line for crypto-native betting platforms.
Polymarket Ruling Sets a Precedent
Just days before the Coinbase lawsuit, a Nevada court issued a temporary restraining order against a Polymarket operator, preventing the platform from offering event-based contracts to state residents.
The judge cited “immediate” and “irreparable” harm to Nevada’s ability to regulate betting without proper authorization.
Together, the Coinbase and Polymarket cases signal a broader shift: state regulators are moving aggressively to assert control over prediction markets tied to real-world events.
CFTC Authority Now Under Pressure
These developments extend far beyond Coinbase.
Legal analysts warn that the growing number of state-level actions could:
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Undermine the CFTC’s exclusive authority over prediction platforms
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Expand the power of state gaming regulators
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Force Kalshi, Polymarket, and similar platforms to rethink their US operating models
The takeaway is increasingly clear: federal approval alone may no longer be sufficient.
A Turning Point for Crypto Prediction Markets
Nevada’s intervention could spark similar enforcement actions across other states. Sports-linked event contracts, in particular, now appear likely to be folded into traditional gambling frameworks.
Coinbase has not yet released a formal response to the lawsuit. Market participants, however, view the case as more than a commercial dispute — it represents a structural battle over who controls the future of prediction markets in the United States.
The outcome could reshape how Web3-based betting platforms operate nationwide.
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