Due to illegally providing sports betting services, the cryptocurrency trading platform Coinbase is being sued.

The Nevada Gaming Control Board filed a civil lawsuit against the cryptocurrency trading platform Coinbase, accusing the platform of providing sports betting services without the necessary license through its prediction market products, in violation of the state's laws. The complaint shows that the Nevada Gaming Control Board officially filed the lawsuit this week, demanding that Coinbase stop offering event-based contracts tied to sports results and stating that these contracts constitute gambling activities, and the platform must hold a gambling operating license in the state to engage in such activities. Coinbase's prediction market platform allows users to trade contract products linked to various real-world events such as sports and politics. Nevada regulators believe that regardless of the structure or labeling of these contracts, as long as they are related to sports outcomes, they fall under the state's gambling regulations. This lawsuit comes just weeks after Coinbase partnered with Kalshi to launch prediction market products nationwide in the United States, with these products now available in all 50 states.