PANews reported on February 4th that, according to Cointelegraph, the Nevada Gaming Regulatory Commission filed documents in the First Judicial District Court of Nevada accusing Coinbase Financial Markets of offering unlicensed sports betting. The Commission subsequently requested the court to issue a temporary restraining order and a preliminary injunction prohibiting Coinbase from "operating a sports betting-related derivatives exchange and prediction market."

"The Commission is committed to its duty to operate a thriving gaming industry and protect Nevada citizens," said Mike Dreitzer, president of the Nevada Gaming Regulatory Commission, in a statement. "Yesterday's action underscores that duty."

Less than a week ago, Coinbase announced a partnership with Kalshi, launching a prediction market in all 50 states of the US. While the Commodity Futures Trading Commission (CFTC) regulates the Kalshi platform at the federal level, it may still face legal action from state regulators, including those in Nevada.