Nevada District Court Judge Andrew Gordon has denied Crypto.com’s request for a preliminary injunction that would have allowed the company to keep offering sports-event contracts in the state while it challenges a cease-and-desist order from the Nevada Gaming Control Board (NGCB).
The ruling, issued verbally after a Thursday hearing, marks a setback for Crypto.com in its legal battle over whether sports-related event contracts fall under federal oversight or state gambling laws. The case stems from a June lawsuit filed by Crypto.com after the NGCB ordered it to halt operations related to sports-event contracts, which the board considers illegal under Nevada law.
Different Outcome Than Kalshi
Interestingly, Judge Gordon previously ruled in favor of Kalshi—a rival prediction market operator—granting its request for a preliminary injunction in a similar case involving the same regulatory issue.
In that earlier case, Gordon found that Kalshi’s contracts likely fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC), writing: “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…”
“Nevada regulatory agencies thus have no jurisdiction to decide that Kalshi’s conduct violates state law where, at least at present, those activities are legal under federal law.”
However, in the Crypto.com case, Gordon rejected a nearly identical request. While the written ruling explaining his reasoning is not yet available, the court clearly found distinctions in either the arguments presented or the supporting briefs.
In Kalshi’s case, the Nevada Resort Association submitted an amicus brief. In Crypto.com’s case, it was a tribal consortium—one also involved in Kalshi’s ongoing litigation in Maryland.
National Impact on Prediction Markets
Judge Gordon’s decision could have ripple effects across the U.S., as prediction market operators continue facing legal battles in various states.
If courts increasingly rule that sports-event contracts are not “swaps” regulated by the CFTC, prediction markets could be forced to geoblock certain states or seek gambling licenses where required.
Crypto.com is expected to appeal the decision, as Kalshi has in Maryland after failing to secure an injunction there. In that case, a judge ruled Kalshi was unlikely to prove that federal regulation shielded it from state law.
More Legal Challenges Ahead
Legal fights over sports prediction markets are playing out in several states. Kalshi is also in court in New Jersey, where it did obtain an injunction after regulators issued a cease-and-desist. That case attracted widespread attention, with over 60 tribes and 34 state attorneys general supporting regulators.
In Massachusetts, the attorney general is suing Kalshi, arguing that its contracts amount to unlicensed sports betting and require state approval.
Robinhood is also battling a similar cease-and-desist from the NGCB, with a decision still pending.
As more courts weigh in, the future of sports-event prediction markets remains uncertain.
“As more arguments get filed, judges will start to take closer looks at the interplay between state and federal laws,” said Marc Dunbar, president of the International Masters of Gaming Law.
Source:
“Nevada judge that ruled for Kalshi rules against Crypto.com”, sbcamericas.com, October 3, 2025
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