The First Judicial District Court in Carson City denied the Nevada Gaming Control Board’s request for a temporary restraining order to halt Coinbase’s prediction markets. The decision allows Coinbase to continue offering event-based contracts in Nevada while the parties prepare for a hearing on the injunction.
The Nevada Gambling Council (NGCB) filed a civil lawsuit, accusing Coinbase of operating unlicensed betting through per-event contracts tied to sports and elections, and requested emergency measures to halt the offerings. Regulators argued that the contracts fall within the Nevada Revised Statutes governing gambling and highlighted a discrepancy in age verification.
This was the area of greatest conflict, as Coinbase allows users to gamble even if they are over 18, while the minimum age in Nevada is 21. The board asserted that the platform inflicts “serious, ongoing, and irreparable harm.” However, the court’s denial of the emergency motion leaves the lawsuit active and schedules a hearing on a preliminary injunction.
Legal arguments and why they matter in prediction markets
Coinbase rejects the characterization put forward by the state of Nevada and maintains that its products are federally regulated derivatives under the Commodity Exchange Act, and therefore fall under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC). Paul Grewal, the company’s general counsel, stated that Congress granted the CFTC exclusive authority over these types of listed contracts and that, ultimately, only Congress can modify that framework.
Coinbase has filed similar federal preeminence arguments in other states, such as Michigan, Illinois, and Connecticut, with the aim of establishing a national standard that limits states’ ability to regulate comparable per-event contracts.
On the procedural front, the court rejected the Nevada Gaming Control Board’s (NGCB) emergency request on February 4, 2026, allowing Coinbase’s prediction markets to continue operating on a provisional basis. The NGCB filed its lawsuit on February 2, alleging unlicensed gambling and violations of age limits.
In any case, the outcome will have a direct impact on the operational and compliance planning of platforms that offer event-based contracts in multiple U.S. jurisdictions.
