Nevada Moves to Block Coinbase’s Prediction Markets Without License
By John Nada·Feb 4, 2026·3 min read
The Nevada Gaming Control Board is moving to block Coinbase's prediction markets due to licensing issues, raising questions about state regulation of online gambling.
The Nevada Gaming Control Board is taking decisive action against Coinbase, aiming to stop the exchange from offering event contracts related to sports and elections. Board Chairman Mike Dreitzer emphasized that this move "reinforces" the agency's commitment to protect Nevada citizens and maintain a vibrant gaming industry. This enforcement action follows similar measures against other platforms like Polymarket and Kalshi.
On Monday, the board filed a civil enforcement action against Coinbase Financial Markets, targeting the CFTC-registered exchange for offering event-based contracts without the necessary state gaming licenses. The complaint includes a request for a permanent injunction and declaratory relief in the District Court for Carson City, alongside an application for a temporary restraining order aimed at halting Coinbase's offerings.
The board's statement clarified that providing sports event contracts is considered wagering under Nevada law, specifically citing NRS 463.0193 and 463.01962. Therefore, entities engaged in such activities must be licensed. The board also pointed out that Coinbase’s platform allows users aged 18 and above to trade, conflicting with Nevada’s minimum gambling age of 21.
Coinbase's prediction markets, recently launched through a partnership with Kalshi, cover various events from college basketball to elections. However, the Nevada Gaming Control Board argues that these operations violate state law, creating an unfair competitive advantage over licensed sportsbooks that adhere to strict consumer protection regulations and pay necessary fees.
Coinbase has filed federal lawsuits against gaming regulators in Connecticut, Michigan, and Illinois, claiming that the CFTC has exclusive jurisdiction over prediction markets. This legal stance highlights Coinbase's belief that state enforcement actions hinder innovation and are unlawful. The recent actions by Nevada regulators mark a significant escalation, as they contend that Coinbase’s operations harm their licensed counterparts and violate local gambling statutes.
Notably, Nevada’s efforts against Kalshi began last March, when the board issued a cease-and-desist order regarding its sports event contracts. A temporary injunction in Kalshi’s favor was lifted in November, and the company is currently appealing this decision. The situation has drawn attention from legal experts, with Daniel Wallach, a sports wagering law specialist, noting that multiple amicus groups have sided with Nevada, contrasting with the minimal support for Kalshi.
As the regulatory landscape for prediction markets becomes increasingly contentious, the outcome of this conflict could set a precedent for how such platforms operate within the U.S. market. The Nevada Gaming Control Board's actions serve as a reminder of the complex interplay between state and federal jurisdictions in the rapidly evolving realm of online gambling.
This situation underscores the challenges that cryptocurrency platforms face in navigating existing regulations, particularly as they introduce innovative products that may not fit neatly within traditional regulatory frameworks. The implications for Coinbase and similar platforms could be significant, impacting their ability to operate in various states and shaping the future of prediction markets in the U.S.