CoinbaseLegal

Where are Coinbase prediction markets available? 8 states with a case, tracked

Last checked against court dockets and filings · Updated

As of Oct 21, 2026, a court order or court-entered agreement stops some Coinbase event contracts in Nevada and Michigan, and in 6 more states a lawsuit or regulator’s order is live with no court order in force. Each is checked against its docket and filings. States say their gambling law applies, Coinbase that only the CFTC regulates: positions on licensing, not tax rulings, and absent IRS guidance people file them three common ways.

By Owen Monagan, Founder & CEOUpdated

Coinbase by state

Checked Oct 21, 2026
Switched off
2
Ordered, on hold
0
Case pending
6
No action found
43
Federal status
CFTC-registered futures commission merchant
Source
Switched off
Nevada and Michigan
Next date
Oct 29, 2026: Proposed preliminary injunction due in Coinbase's, the CFTC's and Kalshi's Illinois cases.
Source

What changedSince Oct 16, 2026

Coinbase cases: what changed since Oct 16, 2026?

One change since Oct 16, 2026, newest first, as of the check on Oct 25, 2026. Each links the filing it comes from.

  • Nothing changes for accounts yetThe Second Circuit set argument for November 3 on Coinbase's request for an injunction while it appeals its Connecticut loss. Filing

Corrected in this check

  • Correction Connecticut's governor's office announced on September 10, 2026 that the state had sent cease-and-desist orders to nine prediction markets, naming Coinbase among them. Our Connecticut entry had not mentioned it. Filing

Map

Every state, dated.

Every state sits in one of four groups. Select a state for where it stands and the filing behind it.

Every action here names Coinbase Financial Markets, Inc., which tells the Nevada court it is a CFTC-registered futures commission merchant giving customers access to event contracts listed on Kalshi’s exchange. Coinbase is not the exchange.

Coinbase, state by state

As of Oct 21, 2026

Nevada

Switched offsports, elections and entertainment off since Feb 5, 2026

A state-court preliminary injunction bars Coinbase from offering sports, election and entertainment event contracts in Nevada.

Coinbase in NevadaThe order
Switched off
2
A court order, or an agreement a court has entered as an order, is in force under which Coinbase does not offer the covered markets in the state.
Ordered, on hold
0
The order is paused while the appeal is heard.
Case pending
6
A lawsuit or ruling is live. No order against Coinbase is in force.
No action found
43
We found no order, lawsuit or cease-and-desist involving Coinbase's event contracts here.

Event contracts offered through Coinbase, state by state. Coinbase Financial Markets, Inc., a CFTC-registered futures commission merchant, gives its customers access to event contracts listed on Kalshi's exchange; every action below names that company unless it says otherwise. What a court or regulator has actually done, as it stands on the date above. Tiles are equal in size so a small state reads as clearly as a large one. The state list below holds the same data as text.

Lawsuits6 actions

What states have sued Coinbase?

As of Oct 21, 2026, five states have taken Coinbase to court. Two other things also get called suing Coinbase, and only an order in force switches anything off.

  1. 01Coinbase sues the state firstCoinbase asks a federal court to stop a state’s officials enforcing state gambling law against it, as it did in Michigan, Connecticut, Illinois and Nevada.
  2. 02A state or city suesA gaming regulator, an attorney general or, in Baltimore, the city goes to court. Nevada’s case produced the order now in force there.
  3. 03A regulator orders a stopConnecticut’s Department of Consumer Protection named Coinbase among nine prediction markets it ordered to stop offering sports contracts.
DateStateActionStatus nowFiling
Feb 2, 2026NevadaLawsuit. Nevada Gaming Control Board: Civil enforcement action against Coinbase Financial Markets. First Judicial District Court, Carson City, No. 26 OC 00030 1BSwitched offFiling
Apr 21, 2026New YorkLawsuit. New York Attorney General: Petition against Coinbase Financial Markets under Executive Law § 63(12). New York County Supreme Court, No. 451604/2026Case pendingFiling
Apr 23, 2026WisconsinLawsuit. Wisconsin Department of Justice: Public-nuisance suit against Kalshi's companies, Robinhood, Coinbase Global and Coinbase Financial Markets. Dane County Circuit Court, No. 26-CV-1284Case pendingFiling
Jun 17, 2026KentuckyLawsuit. Kentucky Attorney General: Suit against Kalshi's companies, Robinhood, Webull and Coinbase Financial Markets. Franklin Circuit Court, No. 26-CI-689Case pendingFiling
Aug 13, 2026MarylandLawsuit. City of Baltimore: Suit against KalshiEX, Kalshi Inc., Coinbase Financial Markets, Robinhood and Webull. Circuit Court for Baltimore City, No. C-24-CV-26-005532Case pendingFiling
Sep 10, 2026ConnecticutCease-and-desist. Department of Consumer Protection: Named Coinbase among nine prediction markets ordered to stop offering sports event contracts to Connecticut residents, per the governor's announcement. Case pendingFiling
6 actions by a state, city or regulator against Coinbase, oldest first. Status now is the state’s group on Oct 21, 2026.

Where Coinbase went to court first

StateCaseDocket
ConnecticutCoinbase Financial Markets, Inc. v. TongU.S. District Court, D. Conn., No. 3:25-cv-02121Docket
IllinoisCoinbase Financial Markets, Inc. v. RaoulU.S. District Court, N.D. Ill., No. 1:25-cv-15406Docket
MichiganCoinbase Financial Markets, Inc. v. NesselU.S. District Court, E.D. Mich., No. 4:25-cv-14092Docket
NevadaCoinbase Financial Markets, Inc. v. FordU.S. District Court, D. Nev., No. 2:26-cv-00256Docket
Coinbase asking a federal court to stop a state enforcing its gambling law. The Michigan agreement was filed in one of these cases.

Coinbase’s Illinois case runs beside Kalshi’s and the CFTC’s; the court granted an injunction in part and set a date for its terms.

Your money

What these orders mean for your account.

In Nevada an injunction bars the covered contracts, and in Michigan an agreement the court entered stopped new sports contracts and closed the open ones.

What each order says

Read Oct 21, 2026
Withdraw your cash
Not addressed
Close open positions
Not addressed
New trades
Blocked
Deposits
Not stated
Money back to users
Not stated

From each order’s text where we hold it; “Not verified” marks a written order we haven’t retrieved. Each state page quotes the order line by line.

Wherever you are

  • Coinbase Financial Markets, Inc. is a CFTC-registered futures commission merchant that serves as an intermediary for customers trading contracts listed on a designated contract market, including Kalshi's. Source

Courts

Where the courts stand on Coinbase.

Whether federal commodities law preempts state gambling law is unresolved. Each federal appeals court with a Coinbase case, and the Supreme Court dates ahead.

CourtRulingWhere it standsSource
Second CircuitCT, NY, VTNo decision yetCoinbase's appeal of the Connecticut injunction denial (No. 26-2297) will be heard in tandem with Kalshi's Connecticut and New York appeals. Coinbase's motion for an injunction pending appeal is undecided.Docket
Sixth CircuitKY, MI, OH, TNNo decision yetCoinbase's appeal of the Michigan injunction denial (No. 26-1693) is pending. No decision yet.Docket
Federal appeals courts that have a Coinbase case. A ruling binds the federal courts in the states it covers.

Coinbase at the Supreme Court

Whether federal commodities law preempts state gambling laws as applied to sports contracts on a CFTC-registered exchange. Petitions raising that question are pending at the Supreme Court; none was brought by or against Coinbase.

    Coinbase case dates ahead

    • Oct 29, 2026 Proposed preliminary injunction due in Coinbase's, the CFTC's and Kalshi's Illinois cases. Docket

    Why there is more than one way to file

    Federal appeals courts are split over whether these contracts are gambling that a state can license or exchange products that only the CFTC regulates. A ruling on state licensing is not a tax ruling, and the IRS has issued no guidance on event contracts. Because no court or agency has settled what these contracts are, people file them more than one way. Of the people we’ve seen file, these are the three most common ways, and Realize supports each of them. The same trades can be priced under each route, side by side.

    Three common ways people file event contracts: route, form, and what it does.
    RouteFormWhat it does
    Gambling income, section 165(d)Schedule 1; losses on Schedule AWinnings are reported in full. Losses can be deducted only if you itemize, at 90% of losses and capped at winnings (tax years beginning after Dec 31, 2025).
    Standard capital gainsForm 8949 and Schedule DEach closed contract is a sale. Gain or loss is short or long term by holding period, and net losses can offset other gains.
    Section 1256Form 678160% of the net gain or loss is treated as long term and 40% as short term. Open positions are marked to market at year end, and a net loss can be carried back three years.

    How prediction market trades are taxedTrack the prediction-market lawsuits, court by court

    Coinbase is not a party to any of the Supreme Court petitions; Kalshi at the Supreme Court follows them.

    State by state8 states with a case

    Every state with a Coinbase case.

    Switched-off and on-hold states first. Six states have a page of their own, with the order’s words and every ruling in order.

    Other states with a Coinbase case

    Case pending
    StateWhere it stands
    KentuckyKentucky has sued. No order in force.
    WisconsinWisconsin has sued. No order in force.
    The other 2 states with a live case. Every state not listed: no order, lawsuit or cease-and-desist found as of Oct 21, 2026.

    Questions4 questions

    Questions people ask about Coinbase’s legal status.

    Short answers, from the status file as of Oct 21, 2026.

    Is Coinbase legal in my state?

    As of Oct 21, 2026, Coinbase faces a lawsuit, order or cease-and-desist in 8 states. In Nevada and Michigan, an order or agreement has switched some markets off. In the other 6 states with a case, nothing is switched off, and in every state not listed we found no order, lawsuit or cease-and-desist.

    Which states have sued Coinbase?

    As of Oct 21, 2026, officials or a city in five states have sued Coinbase: Kentucky, Maryland, Nevada, New York and Wisconsin. A lawsuit alone switches nothing off; only an order in force does.

    Has the Supreme Court taken a Coinbase case?

    Not as of Oct 21, 2026, and no petition in a Coinbase case is pending.

    How current is this page?

    We check Coinbase’s cases against court dockets and filings, and the last check was Oct 21, 2026. Changes since Oct 16, 2026 are listed newest first, each with the filing it comes from, so you can read the docket yourself.

    Sources33 documents

    Where each status comes from.

    Primary documents first, each with the date we last read it. Where we keep a copy of a filing, it is linked beside the original.

    1. Nevada Gaming Control Board files civil enforcement action against Coinbase Nevada Gaming Control Board · Checked October 16, 2026Our copy
    2. Order denying emergency motion and dismissing complaint, ECF 24 U.S. District Court, D. Nev. · Checked October 16, 2026Our copy
    3. Order granting plaintiff's motion for preliminary injunction, Nevada v. Coinbase Financial Markets First Judicial District Court, Carson City · Checked October 16, 2026Our copy
    4. Complaint, Coinbase Financial Markets, Inc. v. Nessel, ECF 1 U.S. District Court, E.D. Mich. · Checked October 16, 2026Our copy
    5. Amended order denying preliminary injunction, ECF 58 U.S. District Court, E.D. Mich. · Checked October 16, 2026Our copy
    6. Stipulation and order concerning enforcement, ECF 65 U.S. District Court, E.D. Mich. · Checked October 16, 2026Our copy
    7. Coinbase agrees to halt sports-related event contracts in Michigan Michigan Gaming Control Board · Checked October 16, 2026
    8. Complaint, Coinbase Financial Markets, Inc. v. Tong, ECF 1 U.S. District Court, D. Conn. · Checked October 16, 2026Our copy
    Show all 33 documents
    1. Memorandum and order denying preliminary injunction, ECF 93 U.S. District Court, D. Conn. · Checked October 16, 2026Our copy
    2. Connecticut governor's office release, “Governor Lamont announces new actions against illegal prediction markets offering sports wagers” Connecticut Governor · Checked October 21, 2026
    3. Order directing appeals 26-1835, 26-2239 and 26-2297 to be heard in tandem U.S. Court of Appeals, Second Circuit · Checked October 16, 2026Our copy
    4. Coinbase Financial Markets, Inc. v. Tong, Second Circuit docket U.S. Court of Appeals, Second Circuit · Checked October 16, 2026
    5. Complaint, Coinbase Financial Markets, Inc. v. Raoul, ECF 1 U.S. District Court, N.D. Ill. · Checked October 16, 2026Our copy
    6. Memorandum opinion and order on motions for preliminary injunction (Coinbase, CFTC and Kalshi dockets) U.S. District Court, N.D. Ill. · Checked October 16, 2026Our copy
    7. Coinbase Financial Markets, Inc. v. Raoul, N.D. Ill. docket U.S. District Court, N.D. Ill. · Checked October 16, 2026
    8. Attorney General James sues Coinbase and Gemini New York Attorney General · Checked October 16, 2026
    9. Verified petition, People of the State of New York v. Coinbase Financial Markets, Inc. Supreme Court of the State of New York, New York County · Checked October 16, 2026Our copy
    10. Memorandum of law in support of motion to remand, ECF 15 U.S. District Court, S.D.N.Y. · Checked October 16, 2026Our copy
    11. People of the State of New York v. Coinbase Financial Markets, Inc., S.D.N.Y. docket U.S. District Court, S.D.N.Y. · Checked October 16, 2026
    12. Wisconsin DOJ press release on its suits against event-contract platforms Wisconsin Department of Justice · Checked October 16, 2026Our copy
    13. Notice of removal, State of Wisconsin v. Kalshi, Inc., ECF 1 U.S. District Court, W.D. Wis. · Checked October 16, 2026Our copy
    14. Motion to remand, ECF 27 U.S. District Court, W.D. Wis. · Checked October 16, 2026Our copy
    15. State of Wisconsin v. Kalshi, Inc., W.D. Wis. docket U.S. District Court, W.D. Wis. · Checked October 16, 2026
    16. Motion for preliminary injunction, ECF 62 U.S. District Court, W.D. Wis. · Checked October 16, 2026Our copy
    17. Notice of removal, Commonwealth of Kentucky v. KalshiEX LLC, ECF 1 U.S. District Court, E.D. Ky. · Checked October 16, 2026Our copy
    18. Complaint, Commonwealth of Kentucky v. KalshiEX LLC (Franklin Circuit Court), ECF 1-3 Franklin Circuit Court · Checked October 16, 2026Our copy
    19. Commonwealth of Kentucky v. KalshiEX LLC, E.D. Ky. docket U.S. District Court, E.D. Ky. · Checked October 16, 2026
    20. City of Baltimore v. KalshiEX LLC et al., complaint Circuit Court for Baltimore City (filed by the Baltimore City Law Department) · Checked October 25, 2026Our copy
    21. Stipulation regarding briefing schedule and responsive pleadings, ECF 33 U.S. District Court, D. Md. · Checked October 16, 2026Our copy
    22. Order staying case, ECF 34 U.S. District Court, D. Md. · Checked October 16, 2026Our copy
    23. City of Baltimore v. KalshiEX LLC, D. Md. docket U.S. District Court, D. Md. · Checked October 16, 2026
    24. Complaint, Coinbase Financial Markets, Inc. v. Ford, ECF 1 U.S. District Court, D. Nev. · Checked October 16, 2026Our copy
    25. Notice of motion placed on the calendar, Coinbase Financial Markets, Inc. v. Tong U.S. Court of Appeals, Second Circuit · Checked October 24, 2026

    Also on Realize

    At tax time.

    An order changes where Coinbase offers a market.

    KalshiIs Kalshi legal in your state? Kalshi lists the contracts Coinbase offers; its orders and lawsuits state by state. Read the guide All venuesPrediction market legal status by state. Every venue’s orders and lawsuits side by side, each dated and linked to the filing. Read the guide

    Price your Coinbase year three common ways.

    Enter a Coinbase net result for a federal range under each common route.

    Calculate your taxes