The Nevada Gaming Control Board has announced that Crypto.com, a digital prediction market operator currently embroiled in a legal dispute with the state, will cease offering sports event contracts to residents of Nevada starting November 3. This development follows a ruling by U.S. District Judge Andrew P. Gordon, which denied Crypto.com’s request for a preliminary injunction that would have prevented the Board from enforcing state law against its operations. The company has indicated its intention to appeal this decision.
In a statement, the Board, led by Chair Brittnie Dreitzer, confirmed that all activities related to sports event contracts would be halted during the ongoing legal proceedings. Dreitzer emphasized that Crypto.com would no longer maintain open positions in sports event contracts for Nevada residents and would not allow new contracts to be established.
The Gaming Control Board has reiterated its commitment to protect the welfare and stability of the state’s gaming industry. Dreitzer highlighted that the Board’s mandate includes ensuring the safety and integrity of gaming operations, as well as fostering a competitive economic environment in Nevada.
The agency made it clear in its guidance to licensed operators that sports event contracts are considered wagering under Nevada law. Dreitzer stated, “Wagering occurs whether the contract is listed on an exchange regulated by the Commodity Futures Trading Commission or elsewhere.” This definition encompasses contracts related to the outcomes of not only sporting events but also other significant occurrences including the World Series of Poker, the Oscars, esports competitions, and political elections.
Dreitzer noted that any operator wishing to conduct such offerings in Nevada must possess a nonrestricted gaming license with sports pool approval and comply with all regulatory requirements governing sports wagering, which include having approved wagering accounts and sportsbook systems.
Furthermore, she cautioned licensees about the potential consequences of engaging in similar activities in jurisdictions without adhering to local laws, indicating that such actions could lead to disciplinary measures under Nevada’s Gaming Control Act. Dreitzer warned that involvement in illegal wagering practices or association with entities that violate these laws could jeopardize a licensee’s standing and good character.
The challenges facing Crypto.com in Nevada are part of a broader trend affecting prediction market operators across the United States. Companies like Crypto.com and Kalshi assert that their operations should fall under the Commodity Futures Trading Commission’s jurisdiction and are thus protected by federal law, particularly the Commodity Exchange Act. However, various states, including Nevada, maintain that these event-focused contracts qualify as gambling under state law, resulting in conflicting regulatory landscapes.
In the past, the CFTC has provided conditional approval for prediction markets, which has enabled companies to forge new partnerships and re-establish a presence in the U.S. market within regulated frameworks. Crypto.com has previously engaged in collaborations with other firms, such as Underdog, to broaden its reach across multiple states.
