Illinois argues Coinbase sports contracts fall under state gambling law
Illinois argued in a federal court filing that Coinbase’s sports event contracts resemble wagers and fall under state gambling law, disputing the company’s position that they belong under CFTC oversight. Coinbase is seeking a ruling preventing Illinois, Michigan and Connecticut from treating the contracts as illegal gambling; if Illinois prevails, platforms serving its residents would need Illinois Gaming Board approval.
The dispute could determine whether sports event-contract platforms serving Illinois need state gambling approval and compliance controls.