A Nevada federal court judge denied Crypto.com’s bid for an injunction allowing it to manage sports contracts.
Judge Andrew Gordon denied an injunction that would have allowed the company to continue operating sporting event contracts in the state. This comes as a surprise to the industry, considering The Kalshi prediction market has been allowed to operate very similar services.
The Nevada Gaming Control Board first banned crypto.com from sports scores contracts in June 2025, stating that such contracts needed to be classified as federally regulated swaps, rather than gambling products. This placed them under the jurisdiction of the CFTC.
crypto.com vs. Kalshi in Nevada
While Judge Gordon agreed that the CFTC had jurisdiction in the Calci case, he did not apply the same argument to crypto.com. Instead, the judge affirmed that Crypto.com’s sports prediction contracts are based on the outcomes of sporting events rather than their occurrence or lack of involvement.
NEW: A Nevada federal judge explains why https://t.co/jebmeo4gsaSports prediction contracts are based on the “outcome” of sporting events rather than their “occurrence” or “non-involvement” which a “swap” does not qualify as under the CEA. pic.twitter.com/rrmyytb2zc
– Daniel Wallachlegal (wallachlegal) October 6, 2025
Justice Gordon said, “result” as distinct from “the occurrence, non-existence, or contingency of the occurrence.” According to court records. “They’re just different things. If they were all the same, it would all be a trade-off, and that’s not what I think Congress intended or the CFTC intended.”
This means they do not qualify as swaps under the Commodity Exchange Act (CEA). Crypto.com intends to appeal Judge Gordon’s decision to the Ninth Circuit. This could be because the CFTC is under Increased pressure from traditional sports betting operators To determine whether or not these sports contracts are legal, with that decision still pending.
The competition to gain access to sports contracts is heating up, with Polymarket also taking its first steps Launching legal sports betting options. I was raised Concerns among regulators — but it doesn’t look like it’s slowing down any time soon.
Featured Image: Wikimedia Commonslicensed under CC BY-SA 4.0
Post Crypto.com bid to continue sports betting rejected by Nevada judge appeared first on reading.
[og_img]
Source link