Court rejects Crypto.com’s sports betting bid in Nevada
A Nevada judge has denied Crypto.com’s request for a preliminary injunction against the Nevada Gaming Control Board (NGCB). The decision contrasts with an earlier ruling in favour of Kalshi in a similar case, according to local media reports. This difference in outcomes may influence how sports-related trading contracts are interpreted under US law.
Crypto.com and its legal battle
With contracts based on the results of athletic events, Crypto.com has entered the sports prediction market. The NGCB argues that state gaming laws, not federal commodities regulations, apply to these marketplaces. In retaliation, Crypto.com sued for federal protection and asked for a preliminary injunction to stop Nevada from interfering with its business. Crypto.com’s use of a federal “swaps” argument to avoid state licensing conflicted with the NGCB’s authority.
Judge Andrew Gordon’s decision
A preliminary injunction temporarily stops one party from taking action while the court reviews the case. Crypto.com sought this relief to continue offering its sports prediction contracts during the legal process. Judge Andrew Gordon, who oversees both the Kalshi and Crypto.com cases, denied the injunction in Crypto.com’s case. In April, he granted a similar injunction to Kalshi. The differing outcomes likely stem from how each company’s contracts were structured and whether they met the definition of “swaps” under federal law.
Why Kalshi won, but Crypto.com didn’t
Kalshi argued that its sports event contracts qualified as swaps under the Commodity Exchange Act (CEA), placing them under the jurisdiction of the Commodity Futures Trading Commission (CFTC). Judge Gordon accepted this argument. In contrast, Crypto.com’s contracts resembled traditional bets without a clear commodity basis, leading the judge to view them as subject to state gambling laws.
In the Kalshi ruling, Gordon wrote, “Section 2’s plain and unambiguous language grants the CFTC exclusive jurisdiction over accounts, agreements, and transactions involving swaps or contracts of sale of a commodity for future delivery that are traded or executed on exchanges that the CFTC has designated”.
Crypto.com’s response
Following the ruling, Crypto.com stated it would appeal to the US Circuit Court of Appeals for the Ninth Circuit. A representative representing the company pointed out that previous instances before the same judge had produced different results, and he implied that this would result in a different judgement on appeal. According to Crypto.com, its markets are swaps and are therefore governed by the CFTC. If the appeal is unsuccessful, companies may need to remove certain markets or obtain state gambling licences.
Impact on broader prediction market industry
Platforms that depend on the “swaps” defence for federal scrutiny, such as Kalshi and Polymarket, are impacted by the decision. Regulatory uncertainty could result from state regulators enforcing stronger regulations as a result of a bad precedent. Although Kalshi’s injunction is still in effect, the conflicting decisions suggest that there may be a dispute between federal and state authorities that needs to be settled in higher courts.
This case reflects an ongoing conflict in US law between federal authority and state control. Similar disputes have occurred in online poker, sports betting, and daily fantasy sports. The outcome may decide whether sports prediction markets are governed by federal regulations or restricted by individual state laws.
Financial market reaction
When Kalshi introduced same-game parlays for the NFL, sportsbook stocks such as DraftKings and Flutter declined, indicating investor concern. Crypto.com’s ruling did not cause immediate market changes but suggested a possible slowdown in prediction market growth. DraftKings dropped from over $42 to below $35 in one week, and Flutter, which owns FanDuel, fell by more than 10%. Investors remain uncertain about the impact of prediction markets on traditional betting platforms.
All roads lead to the mother of all conferences in Rome, 03–06 November 2025. SiGMA Central Europe takes centre stage at Fiera Roma, uniting 30,000 delegates, 1,000+ exhibitors, and 550+ expert speakers. This is where legacies are built, and the future takes shape. Connect with the innovators’ driving change.
