Crypto.com halts sports event operations in Nevada
Crypto.com will suspend its sports prediction market operations in Nevada following a federal court ruling. The company has agreed with the Nevada Gaming Control Board (NGCB) to halt these activities while it pursues an appeal. The NGCB confirmed that the platform will stop offering sports event contracts to Nevada residents after 3 November 2025 and will remain inactive until the legal process is resolved.
Overview of dispute
Crypto.com entered the sports prediction market by offering contracts based on sports outcomes, placing it within a complex regulatory framework. Federally, the Commodity Futures Trading Commission (CFTC) classifies these contracts as derivatives. In contrast, Nevada law treats them as wagers, requiring a state-issued gaming licence.
In June 2025, the NGCB issued cease-and-desist letters to several platforms, including Crypto.com, for allegedly offering sports betting without proper licencing. Crypto.com responded by bringing a federal lawsuit, claiming that state regulation should be superseded by CFTC oversight, and asking for a preliminary injunction to prevent Nevada from implementing its gaming regulations.
Federal court decision explained
Earlier this month, US District Judge Andrew P. Gordon denied Crypto.com’s request for a preliminary injunction. The court ruled that the platform’s sports contracts do not qualify as “swaps” under the Commodity Exchange Act and are therefore subject to Nevada’s gaming regulations. This decision differs from a prior ruling in favour of Kalshi, where similar contracts were granted federal protection.
The court found that Crypto.com’s contracts are based on the outcomes of sporting events, not their occurrence or non-occurrence, excluding them from federal swap classification. Following the ruling, Crypto.com and the NGCB agreed to suspend operations after 3 November 2025, while the company appeals to the Ninth Circuit Court of Appeals.
Agreement with Nevada regulators
A CFTC-regulated contract market has voluntarily suspended its operations in Nevada to continue a legal appeal without facing regulatory penalties. As first reported by Howard Stutz of The Nevada Independent via Substack, this marks the first time such a market has halted activity in a single state.
The NGCB reaffirmed that sports event contracts, even those listed on CFTC-regulated exchanges, are considered wagering under state law. This includes bets on sports, entertainment events like the Oscars, esports, and political elections.
According to the notice, “The Board considers sports event contracts, or certain other event contracts, to constitute a wagering activity under state law. Wagering occurs whether the contract is listed on an exchange regulated by the Commodity Futures Trading Commission or elsewhere.”
NGCB Chair Kirk Hendrick and enforcement counsel Edward Dreitzer emphasised the Board’s role in maintaining the integrity and stability of Nevada’s gaming industry. They reiterated that the Board is responsible for protecting public welfare and ensuring fair competition.
Dreitzer stated, “As licensees are probably aware, the Board has been working diligently to uphold its charge to protect the safety, morals, good order, and general welfare of the inhabitants of the state, to foster the stability and success of gaming, and to preserve the competitive economy and policies of free competition of the state of Nevada.”
Impact on other market participants
Crypto.com is not alone in facing regulatory scrutiny over prediction markets. Earlier in 2025, Robinhood suspended its market operated through Kalshi. Other platforms, such as Underdog Fantasy, have explored similar contracts but avoid operating in Nevada.
Companies must have a non-restricted gaming licence with permission to run a sports pool in order to sell sports or event-based contracts in Nevada. Strict requirements for operational compliance, ethical behaviour, and financial transparency must be met in order to receive this licence. Since Crypto.com does not yet possess this licence, it is not permitted to provide such contracts in the state.
Political and economic context
Michael Selig, the current counsel for the SEC’s crypto task force, has been nominated by former President Donald Trump to head the CFTC. Future regulation of prediction markets, especially those linked to sporting events, may be impacted by his possible appointment. During the confirmation process, lawmakers are anticipated to probe his position on these matters.
Future of Crypto.com’s appeal
Crypto.com intends to challenge the federal court’s decision. If the appeal is successful, other states may allow CFTC-regulated platforms to operate without requiring separate gaming licences. The business’s activities in Nevada are still halted till then.
The verdict in Crypto.com’s case could influence US regulations governing online betting and prediction markets. New financial products that blend decentralised finance, prediction trading, and sports analytics may result from more defined regulatory boundaries. For the time being, Nevada maintains its stance that such operations are prohibited in the absence of a gaming licence.
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