Key Moments:
- Nevada Gaming Control Board initiated a civil case against Coinbase Financial Markets, Inc. on February 2, 2026.
- Regulators assert that Coinbase’s event contracts function as sports betting and require state licensing.
- A previous Polymarket restraining order strengthens Nevada’s position as Coinbase prepares to challenge the state’s move.
Regulators Target Event Contracts in Legal Battle
The Nevada Gaming Control Board has filed a civil enforcement action in Carson City District Court against Coinbase Financial Markets, Inc., stating that the company has been facilitating unlicensed sports-related wagering through its app for residents in the state. The Board’s lawsuit, filed on February 2, 2026, seeks a court order to halt what it describes as unlawful wagering activity.
Key Moments:
- Nevada Gaming Control Board initiated a civil case against Coinbase Financial Markets, Inc. on February 2, 2026.
- Regulators assert that Coinbase’s event contracts function as sports betting and require state licensing.
- A previous Polymarket restraining order strengthens Nevada’s position as Coinbase prepares to challenge the state’s move.
Regulators Target Event Contracts in Legal Battle
The Nevada Gaming Control Board has filed a civil enforcement action in Carson City District Court against Coinbase Financial Markets, Inc., stating that the company has been facilitating unlicensed sports-related wagering through its app for residents in the state. The Board’s lawsuit, filed on February 2, 2026, seeks a court order to halt what it describes as unlawful wagering activity.
Nevada’s Position: Event Contracts Are Comparable to Wagering
Central to the dispute is the classification of “event contracts,” including those tied to sports outcomes. According to Nevada regulators, these offerings closely mirror sports bets under existing state law. As such, they contend that Coinbase is obligated to comply with the same licensing and consumer protections applied to established sportsbooks operating in Nevada.
Board Chairman Mike Dreitzer commented, “The Board takes seriously its obligation to operate a thriving gaming industry and to protect Nevada citizens. The action taken yesterday reinforces this obligation.”
Coinbase Responds to Regulatory Actions
Coinbase has publicly opposed the Board’s move, with vice president of litigation Ryan VanGrack stating that the enforcement action is a “state power grab” forbidden by Congress. The outcome of this legal confrontation may have broader implications as prediction-style contracts become more mainstream, particularly given Coinbase’s connection to Kalshi, an operator regulated at the federal level.
Nevada regulators, however, maintain that products leading to financial stakes on sports outcomes constitute betting under state law, regardless of federal oversight or the labels assigned by providers.
Recent Judicial Decisions Bolster State’s Case
Nevada’s aggressive stance follows its recent legal success against Polymarket. In that previous case, Judge Jason D. Woodbury granted a 14-day temporary restraining order halting the offering of event contracts to state residents. A hearing has been scheduled for February 11 to determine if the injunction will be extended. This development strengthens the state’s confidence as it contests similar offerings from Coinbase, especially given the timing with major sporting events ahead.
State-Federal Tension Remains Unresolved
Operators of prediction markets often argue that Commodity Futures Trading Commission oversight preempts state-level intervention. However, federal authorities have indicated a desire for more cohesive national regulation without automatically prohibiting states from pursuing their own enforcement actions. Nevada’s recent moves make clear: contracts tied to sports outcomes offered within the state must comply with state licensing requirements.
| Entity | Action | Date | Context |
|---|---|---|---|
| Nevada Gaming Control Board | Filed civil enforcement action | February 2, 2026 | Against Coinbase for event contracts |
| Polymarket | Temporary restraining order | Prior to Feb. 11 hearing | Blocked from offering event contracts |
Nevada’s Position: Event Contracts Are Comparable to Wagering
Central to the dispute is the classification of “event contracts,” including those tied to sports outcomes. According to Nevada regulators, these offerings closely mirror sports bets under existing state law. As such, they contend that Coinbase is obligated to comply with the same licensing and consumer protections applied to established sportsbooks operating in Nevada.
Board Chairman Mike Dreitzer commented, “The Board takes seriously its obligation to operate a thriving gaming industry and to protect Nevada citizens. The action taken yesterday reinforces this obligation.”
Coinbase Responds to Regulatory Actions
Coinbase has publicly opposed the Board’s move, with vice president of litigation Ryan VanGrack stating that the enforcement action is a “state power grab” forbidden by Congress. The outcome of this legal confrontation may have broader implications as prediction-style contracts become more mainstream, particularly given Coinbase’s connection to Kalshi, an operator regulated at the federal level.
Nevada regulators, however, maintain that products leading to financial stakes on sports outcomes constitute betting under state law, regardless of federal oversight or the labels assigned by providers.
Recent Judicial Decisions Bolster State’s Case
Nevada’s aggressive stance follows its recent legal success against Polymarket. In that previous case, Judge Jason D. Woodbury granted a 14-day temporary restraining order halting the offering of event contracts to state residents. A hearing has been scheduled for February 11 to determine if the injunction will be extended. This development strengthens the state’s confidence as it contests similar offerings from Coinbase, especially given the timing with major sporting events ahead.
State-Federal Tension Remains Unresolved
Operators of prediction markets often argue that Commodity Futures Trading Commission oversight preempts state-level intervention. However, federal authorities have indicated a desire for more cohesive national regulation without automatically prohibiting states from pursuing their own enforcement actions. Nevada’s recent moves make clear: contracts tied to sports outcomes offered within the state must comply with state licensing requirements.
| Entity | Action | Date | Context |
|---|---|---|---|
| Nevada Gaming Control Board | Filed civil enforcement action | February 2, 2026 | Against Coinbase for event contracts |
| Polymarket | Temporary restraining order | Prior to Feb. 11 hearing | Blocked from offering event contracts |
- Author
Daniel Williams
