Court Rules Against Crypto.com’s Sports Prediction Markets in Nevada

The tension between federal and state regulation of crypto-based betting platforms has once again taken center stage. This time, it involves Crypto.com, which is pausing its sports prediction market in Nevada following a federal court ruling against it.

Just ten days after U.S. District Court Judge Andrew Gordon rejected Crypto.com’s motion to continue operating during litigation, Nevada Gaming Control Board (NGCB) Chairman Mike Dreitzer informed licensees that the platform would be suspending its sports contracts in the state. The decision, announced on October 24, means that after November 3, 2025, Crypto.com will no longer offer or hold open positions in sports event contracts for Nevada residents while its appeal moves forward.

Dreitzer noted that although Crypto.com intends to appeal the ruling, it will pause all sports offerings in the state until the case is resolved. The NGCB used the opportunity to reiterate its stance that event-based contracts, including those tied to sports and political outcomes, are considered forms of wagering under Nevada law.

Federal Oversight vs. State Regulation

Crypto.com entered the sports prediction market a little under a year ago, offering contracts based on the outcomes of sporting events. These products, it argued, were regulated by the Commodity Futures Trading Commission (CFTC) as derivatives. However, Nevada law views these contracts as gambling activities, which require a state-issued gaming license.

The NGCB issued cease-and-desist orders in June 2025 to several operators, including Crypto.com and Kalshi, for allegedly offering unlicensed sports betting. Crypto.com responded by filing a federal lawsuit, seeking to block the state’s enforcement because federal law should preempt state rules.

According to the ruling, Crypto.com’s sports contracts are tied directly to who wins or loses a game, rather than to the occurrence or non-occurrence of an event, as defined under the Commodity Exchange Act (CEA). Because of that, the court found that Crypto.com’s products do not qualify as swaps and therefore fall under Nevada’s gaming jurisdiction, not federal oversight.

In its official notice, the NGCB reinforced that sports event contracts constitute wagering in the state’s view. That is, regardless of whether they are hosted by a CFTC-regulated exchange or otherwise. This position extends beyond sports to include political elections, esports, and entertainment events.

What Now?

Crypto.com’s legal battle is far from over. The company plans to appeal the decision to the Ninth Circuit Court of Appeals, hoping to overturn the ruling and restore its Nevada operations. A favorable outcome could set a precedent for how crypto prediction markets are regulated nationwide, potentially allowing CFTC-approved platforms to bypass state licensing requirements.

The case marks a defining moment in the ongoing intersection between blockchain innovation, online betting, and traditional gaming regulation. Its ripple effects are likely to shape the future of crypto wagering in the U.S. in ways that may not be too clear yet.