The Michigan Gaming Control Board filed a lawsuit against Coinbase alleging that the cryptocurrency exchange unlawfully operated a real-money prediction market in Detroit without securing the necessary state license. According to the complaint filed on August 18, 2023, Coinbase launched its prediction market product in March 2023 in Detroit, a jurisdiction that regulates sports betting and real-money gaming under strict licensing requirements. Michigan law mandates that operators providing such real-money prediction market services must obtain a license from the Michigan Gaming Control Board before commencing operations. The board asserts that Coinbase failed to comply with this licensing regulation, thereby violating the state's gambling laws. This lawsuit highlights the regulatory scrutiny emerging around cryptocurrency-based gambling and betting platforms within regulated U.S. gaming jurisdictions. The case could have broader implications for how crypto exchanges conduct prediction market services in regions where real-money gaming is tightly controlled.