Nevada Gaming Board Seeks to Halt Coinbase’s Event Contracts
- The Nevada Gaming Control Board filed a civil enforcement action against Coinbase Financial Markets to stop offering event-based contracts on sports and elections without state gaming licenses.
- Coinbase launched its prediction markets product in partnership with Kalshi, a CFTC-registered designated contract market, last month.
- The board argues that these contracts constitute wagering under Nevada law and require licensing, citing potential harm and unfair competitive advantage over licensed sportsbooks.
- Nevada’s action follows similar enforcement against platforms like Polymarket and Kalshi, with the latter appealing a decision in the Ninth Circuit.
The Nevada Gaming Control Board is taking legal steps to ensure that Coinbase‘s event-based contracts comply with state regulations, emphasizing the need for proper licensing to protect citizens and maintain fair competition among gaming operators.
This move highlights ongoing jurisdictional conflicts between state regulators and federal oversight by the CFTC regarding prediction markets. (Source)
