Crypto.com Halts Sports Event Contracts in Nevada
Crypto.com has stopped offering contracts on sporting events in Nevada following a federal court ruling, agreeing to pause the service until a legal challenge with state regulators concludes.
The decision stems from a cease-and-desist order issued by the Nevada Gaming Control Board (NGCB) that deemed the contracts a form of gambling subject to state law.
The agreement to suspend operations in the state removes the immediate need for a temporary order while CDNA pursues an appeal of the District Court’s decision to the Ninth Circuit Court of Appeals.
Suspension of Game Contracts
The operational change for CDNA is direct and immediate. The firm will not list or offer contracts tied to sports outcomes within Nevada borders while the case remains active. This action resolves any immediate regulatory enforcement concerns during the appeal period, according to a notice filed by the parties.
This outcome is a regulatory win for Nevada authorities, who argue that these prediction products fall under the state’s established gaming framework. The initial dispute began when the NGCB challenged the legality of the contracts in May, leading to the regulatory cease-and-desist action.
The Federal Preemption Argument
The core of the legal battle centers on classifying the sports contracts. CDNA, as the plaintiff, argued that the products should be regulated at the federal level by the Commodity Futures Trading Commission (CFTC). The firm filed suit against the NGCB and State Attorney General, claiming its event contracts qualify as “swaps” under the federal Commodity Exchange Act (CEA).
Under this argument, the CEA grants the CFTC exclusive oversight, meaning federal law would take precedence over, or preempt, state gaming regulations. U.S. District Judge Andrew Gordon, however, denied CDNA’s request for a preliminary injunction on October 14, 2025. The denial suggests the court likely found that the sports contracts did not meet the CEA’s definition of a swap, thereby invalidating the federal preemption defense.
Next Steps in the Court System
Despite the denial of the preliminary injunction and a related motion for summary judgment, CDNA plans to continue the legal fight. The firm intends to appeal Judge Gordon’s order to the Ninth Circuit.
The NGCB’s position, supported by the initial court ruling, holds that any contract tied to an uncertain future outcome, such as a sporting event, is a game of chance unless explicitly licensed by the state.
The ultimate outcome of the appeal will further clarify whether certain derivatives tied to external events require state gaming licenses or fall under exclusive federal financial regulation.
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