Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioCrypto.com will cease offering sports and other event contracts in Nevada, effective November 3, 2025, following a ruling and formal notice from the Nevada Gaming Control Board (NGCB) that classifies event contracts as a form of wagering.
The decision, announced in NGCB’s letter to licensees on October 24, marks a significant setback for the exchange platform’s push into the US prediction market space. It also represents an important victory for a state gaming regulator in the ongoing nationwide legal battles with prediction market platforms.
In its Notice #2025-85, the NGCB confirmed that North American Derivatives Exchange Inc., which operates as Crypto.com, “will not hold open positions in sports event contracts for Nevada residents and will not permit new contracts to be opened.”
The order follows US District Judge Andrew P. Gordon‘s denial of Crypto.com’s request for a preliminary injunction on October 3. The judge’s written order, memorializing the denial, was filed on October 14.
Board Says Event Contracts are Wagers
In the two-page notice, shared by Nevada Independent reporter Howard Stutz, the NGCB stated that it considers “sports event contracts, or certain other events contracts,” as a wagering activity under NRS 463.0193 and 463.01962. That includes even if the contracts are listed on a Commodity Futures Trading Commission (CFTC)-regulated exchange.
“Wagering occurs whether the contract is listed on an exchange regulated by the CFTC or elsewhere,” the notice reads.
The Board reminded operators that “engaging in unlawful sports wagering in another state or entering into a business relationship with another entity offering unlawful sports wagering in another state may call into question the good character and integrity of the licensee.”
Under Nevada law, only companies holding a nonrestricted gaming license with sports-pool approval may offer such wagers.
The October 24 letter followed another NGCB communication on October 15. In that letter, the regulator warned licensees not to offer or partner with companies offering “sports event contracts” without proper authorization. The letter cited examples ranging from “sports competitions and the World Series of Poker to the Oscars, esports, and political elections.”
The Nevada Gaming Commission has also reiterated the NGCB’s stance on prediction markets. In August, Commissioner Brian Krolicki raised questions about FanDuel’s recently announced partnership with the CME Group to offer prediction markets.
Krolicki told FanDuel that in Nevada’s eyes, prediction markets fall outside the state’s definition of legal wagering. That’s even if the CFTC approves them.
Same Judge, Different Outcomes
Crypto.com had brought a lawsuit seeking to block the state’s jurisdiction. It argued that its products are “swaps,” which the CFTC regulates under the Commodity Exchange Act (CEA). That makes them not gambling wagers.
However, Judge Gordon rejected the claim. That ruling came months after Gordon granted a similar injunction to Kalshi in a separate case against Nevada. In that case, the judge’s decision allowed Kalshi to continue offering its contracts in the state as litigation continues.
In Crypto.com’s case, Gordon drew a narrower interpretation of what qualifies as a swap. He concluded that contracts tied to the outcomes of sports events fall within the scope of state laws governing wagering.
Following the October 3 ruling, Crypto.com informed CasinoBeats that it remains convinced its markets qualify as swaps under the CEA. A spokesperson commented, “When two cases on the same issues before the same judge result in two completely different rulings, it guarantees a different result at the appellate level.”
The company confirmed it intends to appeal.
Parties Reach Interim Agreement
The case, however, didn’t end with the denial. In a joint notice filed October 24, 2025, Crypto.com and the State of Nevada confirmed they “have reached an agreement that obviates the need for interim relief regarding enforcement pending appeal.” The filing means neither side will seek additional court orders while the appeal moves forward in the Ninth Circuit.
The Nevada Resort Association intervened in the case and stated it had “no objection” to the agreement. While the arrangement doesn’t alter the court’s denial of Crypto.com’s injunction or the NGCB’s classification of event contracts as wagering, it effectively pauses further enforcement steps until the appellate process plays out.
What Happens Next
Crypto.com’s Nevada notice takes effect on November 3, when it must shut down all remaining sports-event contracts for Nevada residents. The company’s appeal could stretch into 2026 and may influence whether prediction-market platforms can operate nationwide under federal jurisdiction.
The NGCB stated that it will continue to monitor activity to ensure compliance with Nevada law and to “preserve the integrity of the gaming industry.”
Crypto.com’s withdrawal from Nevada means that it will need to implement geolocation technology to block Nevada users. Kalshi has argued that this is neither technologically straightforward nor economically viable for event-contract platforms. But with the Nevada decision, Kalshi could lose one argument.
For now, the case marks a significant victory for Nevada regulators. It clearly distinguishes between federal innovation and state sovereignty, which could help shape the legal landscape of prediction markets in the US.
