A significant legal development has emerged for Crypto.com, as a U.S. federal judge has mandated the suspension of its sports prediction markets in Nevada. This ruling represents a notable obstacle in the company’s efforts to broaden its event-based trading operations throughout the United States.
Judge Andrew P. Gordon, presiding over the U.S. District Court for Nevada, recently denied Crypto.com’s request for a preliminary injunction. Consequently, the platform is required to adhere to the order issued by the Nevada Gaming Control Board (NGCB) and halt its operations within the state. The company now faces a tight deadline, as it must block Nevada users from accessing its sports markets starting Monday, or it risks incurring significant penalties.
The conflict escalated after the NGCB determined in May 2025 that Crypto.com was engaging in unlicensed sports betting, contravening Nevada’s regulations. In response, Crypto.com initiated a lawsuit in June, asserting that its event-based contracts should be classified as “swaps” rather than bets, and thus fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC). However, Judge Gordon dismissed this interpretation, affirming that Crypto.com’s markets are ultimately dependent on the results of sports events, which categorizes them under Nevada’s gambling laws.
This ruling has garnered attention, particularly when contrasted with an earlier decision involving Kalshi, another prediction market platform, which was permitted to operate in Nevada this year. Legal analysts note that this inconsistency could significantly influence Crypto.com’s forthcoming appeal to the Ninth Circuit Court.
The case highlights a complex challenge within U.S. law regarding the regulation of prediction markets. While the CFTC provides oversight for event contracts on a federal scale, state gaming regulators contend that stakes on sports or entertainment events should be governed by standard gambling laws. The NGCB reaffirmed its position last week, articulating that any entity accepting bets on real-world events in Nevada must possess a non-restricted gaming license. Officials have emphasized that stringent regulations are essential for maintaining the integrity and security of the state’s gambling industry.
In light of the recent ruling, Crypto.com has stated its intention to appeal to the Ninth Circuit, indicating its determination to continue its legal battle. However, as it stands, Nevada residents will be unable to access the company’s sports prediction markets. This case represents a pivotal moment in the broader discussion regarding the appropriate classification of prediction markets—whether they fall under financial regulation or gambling law. The divergent interpretations at the state and federal levels mean that Crypto.com’s ongoing legal challenge may help shape the future landscape of event-based contracts throughout the United States.
