Crypto.com has faced a considerable setback in Nevada, where the company will suspend its contracts for sports events in response to regulatory actions. This development marks a notable moment in an ongoing legal struggle involving the state’s gaming regulators and companies that provide prediction markets, which have been at the forefront of sports betting discussions.
The state of Nevada has a well-defined sports betting regulatory framework that has engaged in disputes with courts regarding the activities and services of prediction providers. Companies like Crypto.com, along with others such as Kalshi, have contended that they operate under federal approval and existing legislation, including the Commodity Exchange Act (CEA). This stance has put them at odds with state regulations, particularly as states like Nevada tighten their grip on the prediction market landscape.
The Commodity Futures Trading Commission (CFTC) has previously granted permission for prediction providers to function within specific boundaries, leading to a surge of partnerships between these companies and federally sanctioned entities. For instance, Polymarket recently returned to the U.S. after securing a collaboration with QCX LLC, a CFTC-approved clearing house. Major betting entities have also shown interest in engaging with these prediction providers; Crypto.com formed an agreement with Underdog to distribute betting markets in sixteen states.
However, Nevada’s betting regulators have effectively challenged Crypto.com’s right to operate. Legal experts have reported on social media that the state has achieved a significant legal victory against the company’s prediction markets. A federal judge denied a preliminary injunction requested by Crypto.com in a cease-and-desist case, thereby affirming that the organization must cease offering sports event contracts in Nevada until the legal matter is resolved.
This court ruling implies that Crypto.com will not be able to persuade Judge Andrew P. Gordon to alter the decision in their favor for the time being. The company is seeking to appeal the ruling, yet it has been clearly stated that effective November 3, 2025, Crypto.com will halt its offerings of sports event contracts to residents of Nevada. This suspension means that the company will not maintain any existing positions in sports event contracts for Nevada residents and will cap the opening of new contracts.
The court ruling underscores a stringent requirement for offering sports event contracts, specifying that such activities can only occur in Nevada if the entity possesses a nonrestricted gaming license with sports pool approval and complies with additional stipulations regarding wagering accounts and sports book systems.
As the situation develops, other prediction providers operating in Nevada may anticipate a wave of submissions challenging their right to function amid ongoing judicial scrutiny.
