Nevada Targets Coinbase Prediction Markets After Polymarket Ban

Nevada regulators escalated their crackdown on crypto-linked prediction markets on February 2, 2026, filing a civil enforcement action against Coinbase Financial Markets in Carson City District Court. The Nevada Gaming Control Board (NGCB) seeks a temporary restraining order and preliminary injunction to prevent Coinbase from offering event-based contracts—particularly those tied to sports outcomes—to state residents without a Nevada gaming license.

The complaint alleges that Coinbase’s prediction markets, launched nationwide in late January via a partnership with CFTC-regulated Kalshi, constitute unlicensed wagering under state gambling laws. Regulators argue these contracts allow bets on event results, requiring state oversight regardless of federal commodities registration.

This move mirrors Nevada’s recent action against Polymarket: After an NGCB lawsuit filed January 16, a state judge issued a 14-day temporary restraining order (around late January/early February), barring the decentralized platform from serving Nevada users amid similar unlicensed gambling claims. A February 11 hearing will determine if that ban extends.

Coinbase defends its offerings as regulated financial derivatives for forecasting real-world events (sports, politics, economics), not traditional gambling. The exchange emphasizes CFTC compliance and has pursued federal preemption arguments, including prior lawsuits against other states attempting restrictions.

The disputes underscore a regulatory gray area: While the CFTC oversees event contracts as commodities, states like Nevada insist gambling statutes apply to wagering-like activities, especially sports. Legal experts see potential precedent-setting implications for nationwide crypto prediction markets, amid growing popularity for election and event forecasting.

If injunctions are granted, Nevada Coinbase users could face restricted access or service changes. Coinbase may challenge the action, but the case highlights intensifying state-level scrutiny on platforms blending finance and betting. Updates expected as hearings proceed.