Crypto.com will stop offering sporting event contracts in Nevada after Nov. 3, and until its ongoing lawsuit with the Nevada Gaming Control Board (NGCB) is resolved. NGCB chairman Mike Dreitzer announced the news to Nevada’s licensees on Friday.
Key Takeaways
- Nevada is one of many states challenging the legality of prediction market sporting event contracts.
- Crypto.com filed a lawsuit against the NGCB in June after receiving a cease-and-desist order in May.
- Crypto.com’s Nevada lawsuit could impact competitors like Kalshi.
The announcement, shared by The Independent's Howard Stutz, marks one more chapter in the ongoing saga between Crypto.com and the Silver State – and the bigger battle between state gambling regulators and nationally regulated prediction markets.
Prediction markets are regulated by the U.S. Commodity Futures Trading Commission. Until recently, prediction market operators offered futures contracts on financial and political events. Lately, however, prediction operators began offering contracts based on sporting events. State gambling operators argue that these contracts constitute unregulated and unlicensed sports betting.
"The Board has confirmed that after Nov. 3, 2025, and until the resolution of its appeal, Crypto.com will not be offering sports event contracts to Nevada residents," reads the NGCB litigation update.
"That means Crypto.com will no longer hold open positions in sports event contracts for Nevada residents and will not permit new contracts to be opened."
Nevada background
On May 20, Nevada issued a cease-and-desist order to Crypto.com. and its prediction market arm Crypto.com Derivatives North America (CDNA), claiming its sports event contracts were illegal in the state of Nevada. Within weeks, CDNA fired back with a lawsuit seeking an injunction from the order, arguing that the NGCB does not have regulatory authority over prediction markets.
Earlier this month, the NGCB warned its licensees that if they were to offer prediction market sporting event contracts, they would need to obtain a nonrestricted gaming license and sports pool approval. Offering sporting event contracts without this dedicated licensing approval could jeopardize a licensee’s good standing with the NGCB.
The United States District Court for the District of Nevada denied CDNA’s request for a preliminary injunction in a decision filed Oct. 14. Crypto.com and CDNA have said they will appeal the decision to the Ninth Circuit Court of Appeals. In the interim, Crypto.com and CDNA will comply with the NGCB’s cease-and-desist order.
Potential Kalshi blowback
CDNA was surprised by the court’s decision. Crypto.com employed many of the same arguments as its competitor Kalshi used in the very same Nevada courtroom. Yet, Kalshi succeeded in winning its injunction back in April. And now, the Crypto decision could negatively impact Kalshi.
Last week, the NGCB filed an emergency motion to dismiss Kalshi’s injunction in Nevada. Meanwhile, Nevada isn’t the only state where Kalshi is going head-to-head in court with gambling regulators. Kalshi is also tangling with New York, Ohio, Massachusetts, Maryland, New Jersey, and tribal interests in California and Wisconsin.
