U.S. authorities in Nevada have sued Coinbase on allegations of unlicensed sports gambling, Cointelegraph reported on Feb. 3 local time.
The Nevada Gaming Control Board, which regulates the gaming industry in Nevada, took legal action, saying Coinbase provided illegal gambling tied to sports event contracts. It asked a court for a preliminary injunction that would ban Coinbase from operating a derivatives exchange and prediction markets.
The move came a week after Coinbase partnered with Kalshi to open prediction markets in all 50 U.S. states. Kalshi is overseen at the federal level by the U.S. Commodity Futures Trading Commission (CFTC), but it can be affected by state government regulation, including in Nevada.
The lawsuit is drawing attention as a case in which crypto-based prediction markets clash with state regulation. A Nevada court recently approved a similar preliminary injunction against the operator of Polymarket.
Chi-gyu Hwang
delight@d-today.co.kr