Nevada Judge Denies Crypto.com’s Injunction Against State Gaming Regulations
- A Nevada judge denied Crypto.com‘s request for an injunction to block state gaming regulations.
- Judge Andrew Gordon ruled that Crypto.com’s sports contracts do not qualify as “swaps” under the Commodity Exchange Act (CEA).
- The ruling contrasts with a previous decision in favor of Kalshi, another prediction market company.
- Legal expert Aaron Brogan predicts the decision will be overturned on appeal, calling it “completely fanciful.”
The denial marks a significant legal setback for Crypto.com in its efforts to operate prediction markets free from state regulation in Nevada, highlighting ongoing tensions between state and federal oversight of such platforms.
Judge Gordon’s ruling was based on the distinction between “outcomes” and “occurrences,” which he argued disqualifies these contracts as swaps under federal law—a point contested by some legal experts who anticipate an appeal could reverse this decision. (Source)
