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Coinbase prohibited from offering event contract trading in Nevada

The NGCB filed a lawsuit against the prediction markets operator on February 4, seeking a permanent injunction and declaratory relief to prohibit Coinbase from offering event contracts.

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Coinbase prohibited from offering event contract trading in Nevada
Key Points
As a result of the injunction, Coinbase has 60 days to complete ‘technological enhancements’ which comply with the order
Judge Kristin Luis granted the preliminary injunction on March 26, determining that Coinbase’s presence would cause ‘immediate and irreparable harm’

Judge Kristin Luis has granted the Nevada Gaming Control Board (NGCB) a preliminary injunction against Coinbase, prohibiting the operator from offering sports, entertainment and political event contract trading. 

Luis had originally granted the NCGB a temporary restraining order against Coinbase during February 2026, now ruling the operator’s presence would create “immediate and irreparable harm to Nevada’s ‘comprehensive regulatory structure’ and ‘strict licensing standards.’”

Coinbase had argued its registration with the Commodity Futures Trading Commission (CFTC) and Commodity Exchange Act allowed it to offer event contract trading in Nevada, but were instead denied by the District Court judge. 

Luis ruled the Commodity Exchange Act “does not vest exclusive jurisdiction over event contracts through Coinbase’s platform” and that the NGCB has authority to “prosecute the enforcement action.”

As a result of the injunction, Coinbase has 60 days to complete “technological enhancements” which comply with the order. Luis also ruled the NGCB is required to “protect the public and advance Nevada’s interest in administering a reputable gaming industry with integrity.”

The NGCB filed a lawsuit against Coinbase on February 4, seeking a permanent injunction and declaratory relief to prohibit Coinbase from offering event contracts.

The operator is also currently engaged in legal battles with regulators in Connecticut, Michigan and Illinois, having filed its own lawsuits in each state. 

On March 23, the First Judicial District Court for the State of Nevada issued a temporary restraining order against Kalshi, prohibiting the prediction market operator from offering sports, election and entertainment event contracts. 

The ruling requires Kalshi to immediately cease offering these contracts in Nevada, following action brought forth by the NGCB. The regulator determined Kalshi’s event contracts constitute wagering activity under state law and therefore require a valid gaming license.

Good to know

Coinbase’s prediction market platform, announced in tandem with Kalshi last December, launched in 50 US states on January 29, covering sports, entertainment and political event contracts

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