Judge Tells Crypto.com to Stop Nevada Prediction Markets in Legal Fight

The decision requires the Singapore-based company to restrict access for all Nevada users to its sports markets or face substantial penaltiesImage Source: Shuttersstock.com

A US federal judgehas told Crypto.comto stop its sports prediction markets in Nevadafrom Monday, derailing the crypto platform’s plans to grow its event-based contracts across the country.

Court Denies Crypto.com’s Injunction, Upholds State Authority Over Sports Contracts

Judge Andrew P. Gordon of the U.S. District Court for Nevadasaid 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.

The fight began when the NGCBsaid on May 20 that Crypto.comwas running sports betting without a license, breaking state law. Crypto.comfought 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.

However, Judge Gordondid not buy this claim. He said Crypto.com’s contractswere 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.

Nevada Crackdown Puts Crypto.com on Defense as Legal Battle Heads to Ninth Circuit

The ruling surprised many industry observerssince 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.

Lawyers say this case shows the growing confusion about how to regulate prediction marketsin the US. While the CFTCoversees 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.

The NGCBrestated 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.

Despite this setback, Crypto.comseems determined to pursue its federal case. The company has already told the court it plans to appeal. It is getting ready to ngake its case to the Ninth Circuit. As of now, Nevadagamblers will not be able to access Crypto.com‘s sports prediction markets online. The company is getting ready for another round in its high-sngakes legal fight.