Crypto.com to suspend sports event contracts in Nevada after court ruling

The Nevada Gaming Control Board announced late Friday that Crypto.com, a digital prediction market operator currently engaged in a legal dispute with the state, will cease offering sports event contracts to state residents beginning November 3.

The decision follows an earlier ruling by U.S. District Judge Andrew P. Gordon, who on October 14 denied Crypto.com’s motion for a preliminary injunction that sought to block the Board from enforcing state law against its operations. The company has said it intends to appeal that decision.

The Board’s notice, issued by its chair, Brittnie Dreitzer, confirmed that Crypto.com will halt all activity related to sports event contracts in the state while the case proceeds. “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,” Dreitzer said.

She added that the Board “has been working diligently to uphold its charge to protect the safety, morals, good order, and general welfare of the inhabitants of the state, to foster the stability and success of gaming, and to preserve the competitive economy and policies of free competition of the state of Nevada.”

The agency also reiterated its earlier guidance to licensed operators, clarifying that sports event contracts fall within Nevada’s definition of wagering under state law. “The Board considers sports event contracts, or certain other event contracts, to constitute a wagering activity under (state law),” Dreitzer said. “Wagering occurs whether the contract is listed on an exchange regulated by the Commodity Futures Trading Commission or elsewhere.”

According to the notice, this includes contracts based on outcomes or partial outcomes of sporting and athletic events, as well as other events such as the World Series of Poker, the Oscars, esports competitions, and political elections. 

Dreitzer stated that such offerings may only be conducted in Nevada if the operator holds a nonrestricted gaming license with sports pool approval and meets all regulatory requirements for sports wagering, including approved wagering accounts and sportsbook systems.

“If a Nevada licensee chooses to offer sports and other event contracts in Nevada or decides to partner with other entities offering sports and other event contracts in the state, the Board will consider these developments as it evaluates the suitability of the entity to maintain a Nevada gaming license,” Dreitzer said. 

She warned that licensees engaging in similar activities in other states without complying with those states’ laws could face disciplinary action under Nevada’s Gaming Control Act.

Engaging in unlawful wagering or associating with entities that do so “may call into question the good character and integrity” of a licensee, Dreitzer added, reminding all operators to maintain compliance across jurisdictions.

Crypto.com’s operations in Nevada come amid legal challenges faced by prediction market providers across the United States. Companies like Crypto.com and Kalshi have argued that their activities fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC) and are protected by federal law, specifically the Commodity Exchange Act. However, several states, including Nevada, maintain that such event-based contracts constitute gambling under state statutes.

The CFTC has previously granted conditional approval to prediction markets, prompting companies to expand partnerships and re-enter the U.S. market under regulated structures. Crypto.com had entered agreements to provide markets across multiple states through collaborations with firms such as Underdog.