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:

• An immediate suspension of Coinbase’s sports event contracts

• A halt to its derivatives exchange and prediction market activities

• 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:

• The CFTC oversees prediction markets at the federal level

• 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:

• Undermine the CFTC’s exclusive authority over prediction platforms

• Expand the power of state gaming regulators

• 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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U.S. Securities Agency Drops Binance Lawsuit 

In 2023, the SEC accused Binance of artificially inflating trading volumes and misusing customer funds. It also claimed that Binance failed to restrict U.S. users from accessing the platform and misled investors about market oversight. Additionally, the SEC alleged that Binance allowed trading of various digital tokens as unregistered securities. Following the lawsuit, users withdrew approximately $800 million in assets from Binance platforms. At the time, the BNB token lost over 12% of its value. 

In the lawsuit, Binance’s then-Chief Compliance Officer (CCO) reportedly told another compliance officer in December 2018, “Dude, we’re operating as an unlicensed securities exchange in the U.S.” 

In a filing submitted to the District Court for the District of Columbia on May 29, the SEC stated that it found dismissing the case appropriate “in the exercise of its discretion and as a matter of policy.” 

New Era in SEC’s Cryptocurrency Regulations 

Following the departure of former SEC Chairman Gary Gensler, many of the agency’s significant cryptocurrency-related lawsuits have been dropped or suspended. With the start of the Trump administration, the SEC has begun reviewing its regulations concerning the cryptocurrency sector. In this context, the SEC has dropped or suspended lawsuits against major crypto companies such as Coinbase, Ripple, Kraken, ConsenSys, and Immutable. However, not all cases have been terminated. For instance, Ripple’s case with the SEC will be closed following court approval. Additionally, investigations into companies like Unicoin, Crypto.com, and Immutable are still ongoing. The SEC has yet to announce its decisions regarding these firms. 

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The plaintiffs claim that the ALGO, XLM, SOL, MANA, MATIC, NEAR, UNI and XTZ tokens traded on Coinbase are, in fact, securities. A law firm called Scott+Scott filed this lawsuit in the Northern District of California to represent plaintiffs from California and Florida.

The lawsuit alleges that Coinbase knowingly and knowingly violated state securities laws. Coinbase denies the allegations and expresses full faith in the judicial process. The company stated that they would address the allegations at the appropriate time.

This lawsuit addresses a different issue than the legal battle Coinbase is currently having with the SEC. In this fight, it is being discussed whether the tokens sold on Coinbase’s platform are securities or not. Coinbase objected to having its decision reviewed by a judge and filed a provisional appeal.

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