Key Moments:
- Crypto.com has agreed to suspend its Nevada sports prediction market activities after a federal court ruling.
- Operations will cease for Nevada residents after 3 November 2025 while Crypto.com appeals the decision.
- The Nevada Gaming Control Board maintains that event contracts are classified as wagering under state law, regardless of CFTC regulation.
Background of the Regulatory Clash
Crypto.com ventured into the sports prediction sector by offering contracts tied to sports event outcomes, placing the business at the intersection of different regulatory frameworks. The Commodity Futures Trading Commission (CFTC) deems such contracts derivatives, but Nevada regulates them as wagers, making them subject to state licensing requirements.
In June 2025, the Nevada Gaming Control Board (NGCB) issued cease-and-desist letters to multiple platforms, including Crypto.com, over alleged unlicensed sports betting activities. In response, Crypto.com sought legal intervention in federal court, arguing that federal regulation by the CFTC should take precedence and requesting an injunction to halt Nevada’s enforcement.
Nevada scored a win against prediction markets. @NevadaGCB said that https://t.co/tBEHWxSgju, which was denied a preliminary injunction by the federal judge in a cease-and-desist lawsuit, will not offer sports event contracts in Nevada until the case is resolved.@TheNVIndy pic.twitter.com/t2YmTA5SGk
— Howard Stutz (@howardstutz) October 24, 2025
Federal Court Ruling and Operational Suspension
Earlier in the month, US District Judge Andrew P. Gordon denied Crypto.com’s preliminary injunction request. The decision stated that the company’s contracts, which are settled by sports outcomes, fall under Nevada’s jurisdiction rather than being classified as “swaps” under the Commodity Exchange Act. This outcome contrasts with a prior Kalshi case in which similar contracts were deemed federally protected.
Following the ruling, Crypto.com reached an agreement with the NGCB to stop offering sports event contracts to Nevada residents after 3 November 2025. Operations are to remain suspended until the appellate process, currently with the Ninth Circuit Court of Appeals, is concluded.
Details of the Suspension and Nevada Stance
A CFTC-regulated exchange has voluntarily ceased its Nevada operations in order to pursue a legal appeal without risking regulatory penalties. This move, first covered by Howard Stutz of The Nevada Independent via Substack, marks a unique instance of such a suspension in a single state.
The NGCB has reiterated its stance that contracts on sporting events, entertainment, esports, or political elections are considered wagering activities under state law. The Board emphasized, “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 highlighted the Board’s responsibility to uphold fairness and stability in Nevada’s gaming sector and protect public interests. 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.”
Effects on Other Platforms and Licensing Landscape
Crypto.com is not the only entity facing pressure over event-based markets. In early 2025, Robinhood paused its Kalshi-operated market, while firms like Underdog Fantasy have shown interest but refrain from operating in Nevada.
Nevada law requires companies offering sports or event-based contracts to hold a non-restricted gaming license with specific permissions for sports pool operations. Rigorous standards for compliance, ethics, and transparency apply. As Crypto.com does not possess this license, it cannot currently offer such products in Nevada.
| Company | Status in Nevada | Reason |
|---|---|---|
| Crypto.com | Suspended (after 3 Nov 2025) | No non-restricted gaming license |
| Robinhood (via Kalshi) | Market paused (early 2025) | Regulatory scrutiny |
| Underdog Fantasy | Does not operate in Nevada | Avoids state regulatory requirements |
Regulatory and Economic Considerations
Michael Selig, counsel for the SEC’s crypto task force, has been nominated by former President Donald Trump to lead the CFTC. His potential confirmation may shape future prediction market regulations, particularly those connected to sports events. Lawmakers are expected to scrutinize his stance during the nomination process.
Looking Ahead
Crypto.com is advancing its appeal of the recent federal court ruling. Should the appeal succeed, other states might permit CFTC-regulated platforms to operate without state-specific gaming licenses. Until a resolution is reached, Crypto.com’s Nevada operations remain on hold.
The outcome in this case could set precedents for how the United States approaches regulation of online betting and prediction markets, especially where decentralized financial products are concerned. For now, Nevada continues to enforce its prohibition on unlicensed event-based market activities.
- Author
Daniel Williams
