The Nevada Gaming Control Board (NGCB) has initiated a civil lawsuit against Coinbase Financial Markets, alleging the cryptocurrency exchange offered betting on sporting events without the required state licenses. The lawsuit was filed on Monday, February 2, 2026, in the First Judicial District Court of the State of Nevada in Carson City.
The regulator is asking the court for a temporary restraining order and a preliminary injunction to immediately halt Coinbase from operating a derivatives exchange and prediction markets tied to sporting events within Nevada. This legal action seeks to stop the platform's activities while the case is adjudicated. NGCB Chairman Mike Dreitzer stated the agency is acting to protect state residents and Nevada's gaming industry. Nevada has previously taken similar action against prediction market platform Polymarket.
This lawsuit comes less than a week after Coinbase announced the nationwide launch of its new regulated event-trading platform, Coinbase Predict. Developed in partnership with CFTC-regulated operator Kalshi, Predict allows users across all 50 U.S. states to trade on the outcomes of events in politics, sports, crypto, and culture. The platform is integrated directly into the main Coinbase app, enabling users to manage crypto, equities, cash, and event contracts in one interface.
Trades on Predict involve simple "Yes" or "No" contracts priced between $0 and $1, representing the market's implied probability of an outcome. The minimum trade size is $1, and positions can be funded with U.S. dollars or USDC. Coinbase frames this launch as a strategic reset and a key step toward CEO Brian Armstrong's "Everything Exchange" vision, aiming to tap into a global prediction market sector estimated at $37 billion.
