On November 5, 2025, U.S. federal judge Andrew P. Gordon mandated that Crypto.com halt its sports prediction markets in Nevada. This decision comes as a significant blow to the crypto platform’s efforts to expand its event-based contract offerings across the United States.
The U.S. District Court for Nevada denied Crypto.com’s request for a preliminary injunction, effectively enforcing the Nevada Gaming Control Board’s (NGCB) earlier directive to cease operations. As a result, the Singapore-headquartered firm must block all Nevada residents from accessing its sports markets or face substantial penalties.
The legal conflict started on May 20, when the NGCB accused Crypto.com of operating sports betting activities without the necessary state license, thus violating Nevada gaming statutes. In response, Crypto.com initiated a lawsuit in June, arguing that its event-based contracts should be classified as “swaps” under the jurisdiction of the Commodity Futures Trading Commission (CFTC), rather than bets regulated by Nevada’s gaming laws.
Judge Gordon, however, rejected this argument, concluding that Crypto.com’s contracts did not qualify as swaps since their outcomes depended on the results of sports events rather than quantifiable financial indicators. Consequently, these contracts fall within the regulatory domain of Nevada’s gambling laws.
The ruling has generated surprise across the industry, particularly because the same judge allowed another platform, Kalshi, to continue offering similar prediction markets in Nevada just a few months prior, in August. This discrepancy in rulings might play a pivotal role as Crypto.com prepares to appeal the decision to the Ninth Circuit Court.
The situation underscores the existing ambiguity surrounding the regulation of prediction markets within the United States. While platforms like Kalshi operate under the aegis of the CFTC, state gambling regulators maintain that contracts tied to sports or entertainment outcomes are inherently bets, irrespective of the technology or market format employed.
Last week, the NGCB reiterated its stance, emphasizing that any entity offering wagers on real-world events must secure a Nevada non-restricted gaming license. Authorities underscored the importance of rigorous regulatory oversight to safeguard the state’s lucrative gambling sector.
Despite this legal setback, Crypto.com remains resolute in pursuing its federal case. The company has already notified the court of its intention to appeal and is gearing up to present its arguments before the Ninth Circuit. For now, Nevada residents will be unable to access Crypto.com’s sports prediction markets, as the company braces for the next phase of its complex legal battle.
In discussing the implications of the ruling, experts highlight a growing tension between federal and state oversight of online prediction markets. The distinction between financial derivatives and traditional gambling activities remains blurred, complicating the regulatory landscape. “This case could redefine how prediction markets are perceived in the legal realm,” some legal analysts speculate, pointing to the potential for landmark decisions that might arise from the ongoing litigation.
Conversely, some industry insiders argue that the ruling against Crypto.com reflects Nevada’s commitment to maintaining strict control over its gaming industry. They assert that the state’s economic interests are best served by ensuring all operators comply with established licensing requirements. “Nevada’s regulatory framework is designed to protect the integrity and profitability of its gambling operations,” they remark, suggesting that the court’s decision aligns with these priorities.
As the case progresses to the appellate court, stakeholders in the prediction market industry are keenly observing the developments. The outcome could have far-reaching implications not just for Crypto.com but for the broader landscape of digital financial products and their intersection with traditional gambling laws. In the interim, the case continues to illuminate the challenges of adapting longstanding regulatory systems to innovative technologies and business models in the rapidly evolving world of online betting and crypto markets.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
