Coinbase is facing a civil enforcement action in Nevada after state gaming regulators said the company offered event contracts that look like wagers to local users.
Nevada Files Civil Enforcement ActionThe complaint says Coinbase’s event contracts operate like unlicensed sports betting under Nevada law, and that the exchange did not hold the required state gaming license to offer them.
Prediction markets have grown quickly. Coinbase rolled out a prediction market product that lets customers take positions on the outcomes of sports and other real-world events, working with established market operators.
Coinbase has pushed back by suing multiple states in federal court, arguing that event contracts are regulated by the federal Commodity Futures Trading Commission and not by individual state gaming regulators. Those federal suits targeted Connecticut, Illinois, and Michigan, among others.
Federal Regulator Signals New Rules Nevada’s Push Comes As Other States ActRegulators in several states have issued cease-and-desist letters or sued operators they say are offering unlicensed wagering.
Featured image from Shutterstock, chart from TradingView
