Judge Tells Crypto.com to Stop Nevada Prediction Markets in Legal Fight
A US federal judge has told Crypto.com to stop its sports prediction markets in Nevada from Monday, derailing the crypto platform’s plans to grow its event-based contracts across the country.
A US federal judge
Crypto.com
Nevada
Court Denies Crypto.com’s Injunction, Upholds State Authority Over Sports Contracts
Judge Andrew P. Gordon of the U.S. District Court for Nevada said no to the company’s request for a preliminary injunction. This means Crypto.com must now follow the Nevada Gaming Control Board‘s (NGCB) earlier order to stop. The ruling makes the Singapore-based firm block all Nevada residents from using its sports markets or risk big fines.
Judge Andrew P. Gordon of the U.S. District Court for Nevada
The fight began when the NGCB said on May 20 that Crypto.com was running sports betting without a license, breaking state law. Crypto.com fought back in June by suing. The company said its event contracts should be seen as “swaps”, financial tools watched over by the CFTC, not bets under Nevada’s gaming laws.
NGCB
Crypto.com
without a license
Crypto.com
CFTC
However, Judge Gordon did not buy this claim. He said Crypto.com’s contracts were not swaps because they relied on how sports games ended, not on financial matters you can measure. So, he decided these contracts fall under Nevada‘s rules and need to follow the state’s gambling laws.
Judge Gordon
Crypto.com’s contracts
Nevada Crackdown Puts Crypto.com on Defense as Legal Battle Heads to Ninth Circuit
The ruling surprised many industry observers since the same judge allowed Kalshi to keep offering prediction markets in the state back in August. Experts think the difference between these two decisions could be a key point when Crypto.com appeals to the Ninth Circuit Court.
The ruling surprised many industry observers
Crypto.com appeals to the Ninth Circuit Court
Lawyers say this case shows the growing confusion about how to regulate prediction markets in the US. While the CFTC oversees platforms like Kalshi, state gambling regulators argue that contracts linked to sports or entertainment results are bets, no matter what tech or exchange format is used to trade them.
how to regulate prediction markets
CFTC
Kalshi
The NGCB restated its position last week. It said any company offering bets on real-world events must have a Nevada non-restricted gaming license. Officials stressed the need to keep tight regulatory control to protect the state’s gambling industry.
NGCB
must have a Nevada non-restricted gaming license
Despite this setback, Crypto.com seems determined to pursue its federal case. The company has already told the court it plans to appeal. It is getting ready to take its case to the Ninth Circuit. As of now, Nevada gamblers will not be able to access Crypto.com‘s sports prediction markets online. The company is getting ready for another round in its high-stakes legal fight.
Crypto.com
Nevada
Crypto.com
