Coinbase in the Crosshairs as Nevada Seeks to Block the Exchange

Nevada’s pushback against prediction markets continues with regulatory action against Coinbase Financial Markets, the event contracts division of the famous crypto platform. This comes shortly after the Silver State cited a Massachusetts ruling in its fight against other prediction market companies.

Coinbase Under Fire in Nevada

The status of prediction markets continues to be murky and a point of contention in America. While event contract companies claim that their offerings are licensed by CFTC, do not constitute gambling, and are a decentralized form of entertainment, certain similarities to betting have been irking traditional sportsbooks and gaming regulators. As a result, commercial and tribal industry stakeholders and regulators alike have been pushing hard against the growing popularity of such products.

The latest regulatory action in Nevada has seen the Nevada Gaming Control Board crack down on Coinbase Financial Markets, a wholly owned subsidiary of Coinbase. According to a release by the NGCB, the regulator seeks to block the platform in Nevada, arguing that its event contracts constitute illegal sports betting.

Coinbase offers products referred to as event contracts for sale on its mobile app, which are made available to people in Nevada. The board considers offering sports event contracts, or certain other event contracts, to constitute wagering activity under NRS 463.0193 and 463.01962 and, therefore, entities offering such event contracts must be licensed.

NGCB statement

The complaint was filed in the District Court for Carson City, the NGCB clarified. Mike Dreitzer, chair of the NGCB, said that the current action reflects the board’s commitment to safeguarding the integrity of the local industry and Nevada citizens from harm.

The Fight Against Prediction Markets Rages on

Nevada has cemented itself as one of the most heated theaters in the war on prediction markets across America. The traditional industry’s biggest breakthrough, however, happened in Massachusetts, where a recent ruling temporarily prevented Kalshi from offering its products in the state.

The ruling has since been cited by authorities in multiple states.

Prediction markets, on the other hand, have remained adamant that their products fall under the purview of the CFTC and not state gaming regulators.

In the meantime, Nevada’s regulator just banned Polymarket for two weeks.