Nevada regulator urges Coinbase to stop prediction markets
The NGCB claims Coinbase is offering unlicensed wagering in violation of Nevada law.
US.- The Nevada Gaming Control Board (NGCB) has sent a cease-and-desist letter to Coinbase alleging that the company is operating unlicensed gambling in the state. Coinbase sells event contracts, which the NGCB views as a form of wagering.
The NGCB argues that the contracts function as either a sports pool or a percentage game under Nevada law and that Coinbase collects transaction fees on each matched trade, which, in its view, makes it effectively “the house” in a percentage‑based wagering system, rather than a neutral marketplace.
The regulator also claims Coinbase has no physical presence in the state, does not pay Nevada gaming taxes on gross gaming revenue generated from Nevada users and does not comply with the regulatory safeguards imposed on licensed operators.
It adds that Coinbase allows “persons under the age of 21 years of age to place wagers on its market,” whereas Nevada law prohibits gambling by anyone under 21.
In a press release issued on February 3, Mike Dreitzer, chairman of the NGCB, said: “The Board takes seriously its obligation to operate a thriving gaming industry and to protect Nevada citizens. The action taken yesterday reinforces this obligation.”
