The cryptocurrency trading platform Crypto.com has reached an agreement with the Nevada Gaming Control Board (NGCB) to suspend its sports prediction market operations in the state from November 3, 2025, pending the outcome of an appeal of a federal court decision. This decision stems from a federal court's rejection in early October of Crypto.com's motion to prevent the NGCB from enforcing state gambling laws, recognizing Nevada's classification of sports event contracts as gambling activities requiring a license. The NGCB has issued formal notices to licensees, requiring Crypto.com to no longer hold positions in such contracts for residents and not to enter into new contracts. This suspension marks the first time a U.S. CFTC-regulated contract market has ceased operations at the state level, reflecting the increasingly strict scrutiny between prediction markets and sports gambling regulation.
Event Background and Agreement Details
Crypto.com has reached an agreement with the Nevada Gaming Control Board (NGCB) to suspend the provision of sports prediction market services to residents of the state from November 3, 2025, pending an appeal against the federal court decision. In early October, U.S. District Judge Andrew P. Gordon dismissed Crypto.com's motion for a preliminary injunction to prevent the NGCB from enforcing state gambling laws, recognizing that Nevada classifies sports event contracts as gambling activities requiring a license. The NGCB has issued formal notices to all licensees, requiring Crypto.com to no longer hold open positions in sports event contracts for Nevada residents and not to enter into new contracts.
Regulatory Stance and Legal Basis
The NGCB reiterates its long-standing position that sports event contracts—including those listed on CFTC-regulated exchanges—constitute a form of betting under Nevada law, and operators must hold an unrestricted gaming license and obtain sports betting approval. The regulatory scope covers contract markets related to sports outcomes, entertainment cultural competitions (such as the Oscars, esports events, and political elections). The NGCB warns that licensees engaging in unlicensed betting in other jurisdictions or associating with such entities may affect their licensing status and compliance assessment in Nevada.
Industry Impact and Future Directions
This suspension is the first time a CFTC-regulated designated contract market has ceased operations at the state level, a situation previously occurred in the collaboration between Robinhood and Kalshi. The event reflects the stricter scrutiny faced between prediction markets and sports gambling regulation, with both federal and state levels intensifying compliance requirements for such activities. In the future, as the new CFTC chairman's nomination is confirmed and policies evolve, the regulatory framework and interstate operating rules for prediction markets, especially sports-related contracts, may become further clarified, profoundly impacting industry compliance strategies.
