A Nevada federal court docket decide has denied Crypto.com’s bid for an injunction that may enable it to run sports activities contracts.
Choose Andrew Gordon refused the injunction that may have allowed the corporate to proceed working contracts for sports activities occasions within the state. This comes as one thing of a shock to the trade, contemplating prediction market Kalshi has been allowed to function very related companies.
The Nevada Gaming Management Board first banned Crypto.com from sports activities consequence contracts in June 2025, stating that such contracts must be labeled as federally regulated swaps, slightly than playing merchandise. This put them beneath the powers of the CFTC.
Crypto.com versus Kalshi in Nevada
Whereas Choose Gordon agreed that the CFTC had jurisdiction in Kalshi’s case, he didn’t apply the identical argument to Crypto.com. As an alternative, the decide maintained that Crypto.com’s sports activities prediction contracts are primarily based on the outcomes of sporting occasions slightly than their prevalence or non-occurrence.
NEW: Nevada federal decide explains on the report that as a result of https://t.co/jeBmEO4GSa’s sports activities prediction contracts are primarily based on the “outcomes” of sporting occasions slightly than their “prevalence” or “non-occurrence” they don’t qualify as “swaps” beneath the CEA. pic.twitter.com/RrMyytB2ZC
— Daniel Wallach (@WALLACHLEGAL) October 6, 2025
“I see ‘consequence’ as totally different than ‘prevalence, non-occurrence, or extent of contingency of prevalence,’” stated Choose Gordon, in accordance with court docket information. “They’re simply various things. In the event that they had been all the identical, every little thing could be a swap, and that’s not what I believe Congress supposed or the CFTC supposed.”
That signifies that they don’t qualify as swaps beneath the Commodity Trade Act (CEA). Crypto.com intends to enchantment the choice from Choose Gordon earlier than the Ninth Circuit. This could possibly be as a result of the CFTC is beneath rising stress from conventional sports activities betting operators to resolve whether or not such sports activities contracts are authorized or not, with that willpower nonetheless pending.
The competitors to get into sports activities contracts is heating up, with Polymarket additionally taking its first steps to launch authorized sports activities betting choices. It’s raised considerations amongst regulators – however doesn’t seem like slowing down anytime quickly.
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