Crypto.com’s ambitious plans to enter the U.S. sports betting market have encountered a major obstacle after a Nevada federal court judge denied the company’s request to continue offering sports prediction contracts in the state.
The Singapore-based exchange, best known for its global cryptocurrency trading platform and partnerships with major sports brands, has been seeking to integrate blockchain technology into sports wagering. By introducing smart contract-based sports outcome markets, Crypto.com hoped to establish a regulated foothold in multiple U.S. jurisdictions. One of the markets the company was planning on starting with was Nevada, a state long considered the epicenter of legal gambling in America.
A Case of Interpretation?
In a ruling that caught industry observers off guard, U.S. District Judge Andrew Gordon refused to grant Crypto.com an injunction that would have allowed the company to continue operating its sports outcome contracts. The decision followed a ban issued in June 2025 by the Nevada Gaming Control Board (NGCB), which argued that the company’s sports-based products should be classified as federally regulated financial instruments rather than traditional gambling products.
The NGCB maintained that these contracts fell under the Commodity Futures Trading Commission (CFTC)’s jurisdiction, effectively blocking Crypto.com from offering them under Nevada’s state gambling laws. However, Judge Gordon disagreed with that interpretation, concluding that Crypto.com’s contracts did not meet the legal definition of “swaps” under the Commodity Exchange Act (CEA).
According to court filings, Gordon noted that an “outcome” was not equivalent to an “occurrence” or “non-occurrence,” which would make it subject to CFTC oversight. “They’re just different things,” he said, emphasizing that not all prediction contracts fall within the purview of federal commodities regulation.
The Fight Is Not Over Yet
This ruling represents a setback not only for Crypto.com but also for the growing number of crypto-based betting startups exploring new ways to merge decentralized finance (DeFi) with sports wagering. The operator has since announced plans to appeal the ruling before the Ninth Circuit Court of Appeals, signaling its intent to continue challenging state-level restrictions that could limit the rollout of blockchain-based prediction markets.
The case adds new urgency to a broader regulatory debate now taking place at the federal level. While the CFTC previously allowed Kalshi to operate similar markets, Crypto.com’s bid to follow suit has been met with tighter scrutiny. The discrepancy has raised questions about regulatory consistency and whether traditional gambling laws are equipped to handle decentralized, blockchain-powered financial products. Still, some more changes will certainly arise from all this.
