Crypto.com Sues Nevada Gaming Regulator Over Sports Contracts
@Paul, this matter is related to industry coverage and legal interpretations, so I’m assigning it to you.
Key Event: Crypto.com has filed a lawsuit against the Nevada Gaming Control Board for blocking its trading of derivative contracts related to sports events, arguing that these fall under the exclusive regulatory jurisdiction of the Commodity Futures Trading Commission (CFTC) as per federal law. Crypto.com contends that state interference causes significant harm to its business and seeks a permanent injunction to prevent Nevada from enforcing its gaming laws against these contracts.
Editor-in-chief,
Here's an update on the Crypto.com lawsuit against the Nevada Gaming Control Board (NGCB):
According to multiple sources, including Cointelegraph and TradingView, on June 3, 2025, North American Derivatives Exchange, Inc. (NADE), which operates as Crypto.com's North American derivatives business, filed a lawsuit in Nevada's federal court against the NGCB. This action was taken after the NGCB sent Crypto.com a cease-and-desist letter on May 20, 2025, threatening criminal and civil penalties if the exchange continued to offer its sports event-related derivative contracts to Nevada residents. The deadline for Crypto.com to cease operations in Nevada, according to the letter, was 5 p.m. on Wednesday, June 4, 2025.
Crypto.com argues that the NGCB has overstepped its authority, claiming that these derivative contracts fall under the exclusive jurisdiction of the federal Commodity Futures Trading Commission (CFTC) as per the Commodity Exchange Act. The company asserts that the NGCB's premise that these contracts constitute "wagering on sporting events" under Nevada gaming laws is mistaken. Crypto.com is seeking a permanent injunction to prevent Nevada from enforcing its gaming laws against these contracts and a declaratory judgment to affirm federal preemption. They state that complying with Nevada's demands, such as geo-fencing users, would cause "irreparable harm" to its business and potentially violate federal rules requiring impartial market access.
This lawsuit mirrors a similar case involving KalshiEX LLC, another predictions marketplace. In the Kalshi case, U.S. District Judge Andrew Gordon granted a preliminary injunction in April 2025, blocking Nevada gaming regulators from enforcing sports wagering laws against Kalshi, ruling that federal law preempts state authority over CFTC-regulated event contracts. Judge Gordon found that Kalshi was likely to succeed on the merits of its argument that the CFTC has exclusive jurisdiction. The Nevada Resort Association (NRA) was permitted to intervene in the Kalshi lawsuit in early June 2025, arguing that allowing such prediction markets would create a competitive disadvantage for licensed Nevada sports betting operators who must comply with state gaming laws.
Both Crypto.com and Kalshi had previously faced CFTC scrutiny in February 2025 regarding Super Bowl-related contracts. Crypto.com maintains that its event contracts are legal and that the CFTC is the appropriate regulator. Additionally, Crypto.com | Derivatives North America (CDNA) filed a similar lawsuit against the Maryland Lottery and Gaming Control Commission in April 2025 after receiving a cease-and-desist notice regarding its Sports Event Trading product.
Paul,
For the article on the Crypto.com lawsuit against the Nevada Gaming Control Board, focus on clearly detailing the key event: Crypto.com’s North American Derivatives Exchange (NADE) filing a federal lawsuit against NGCB over a cease-and-desist order regarding its sports event-related derivative contracts. Highlight that Crypto.com challenges the NGCB’s authority, asserting federal jurisdiction under the CFTC, and is seeking an injunction and declaratory judgment. Emphasize the context of a similar case with KalshiEX LLC, where federal preemption was upheld. Avoid redundancy and keep the explanation straightforward for our readers to easily grasp the situation and its implications.
Best, [Your Name]
Crypto.com Sues Nevada Gaming Regulator Over Sports Contracts
- Crypto.com’s North American Derivatives Exchange Inc. (NADE) filed a lawsuit against the Nevada Gaming Control Board (NGCB) on June 3, 2025.
- The lawsuit challenges NGCB’s cease-and-desist order, asserting federal jurisdiction over event-related derivative contracts under the Commodity Futures Trading Commission (CFTC).
On June 3, 2025, Cointelegraph and TradingView reported that North American Derivatives Exchange Inc. (NADE), operating as Crypto.com's North American derivatives business, filed a lawsuit in Nevada's federal court. The action comes in response to a cease-and-desist letter received from the Nevada Gaming Control Board (NGCB) on May 20, 2025, which threatened criminal and civil penalties if Crypto.com continued offering its sports event-related derivative contracts to Nevada residents. The deadline to comply was set for 5 p.m. on Wednesday, June 4, 2025.
Crypto.com's lawsuit argues that the NGCB has overstepped its authority by attempting to regulate these derivatives contracts. The company claims that these contracts fall under the exclusive jurisdiction of the federal Commodity Futures Trading Commission (CFTC) as per the Commodity Exchange Act. Crypto.com asserts that the NGCB's interpretation that these contracts amount to "wagering on sporting events" under Nevada gaming laws is incorrect. Through the lawsuit, Crypto.com is seeking a permanent injunction to prevent Nevada from enforcing its gaming laws on these contracts and a declaratory judgment affirming federal preemption. The company states that adhering to Nevada’s demands, such as geo-fencing users, would cause "irreparable harm" to its business and potentially violate federal rules that require impartial market access.
This legal move by Crypto.com parallels a similar lawsuit involving predictions marketplace KalshiEX LLC. In the Kalshi case, U.S. District Judge Andrew Gordon issued a preliminary injunction in April 2025, blocking Nevada gaming regulators from applying sports wagering laws to Kalshi, concluding that federal law preempts state authority over CFTC-regulated event contracts. Judge Gordon found that Kalshi was likely to succeed based on the merits of its federal jurisdiction argument. Additionally, the Nevada Resort Association (NRA) intervened in the Kalshi lawsuit in early June 2025, arguing that allowing such prediction markets would create an uneven playing field for licensed Nevada sports betting operators who comply with state gaming laws.
It is noteworthy that both Crypto.com and Kalshi faced scrutiny from the CFTC in February 2025 regarding Super Bowl-related contracts. Crypto.com maintains that its event contracts are lawful under federal oversight by the CFTC. Coincidentally, Crypto.com | Derivatives North America (CDNA) initiated a similar lawsuit against the Maryland Lottery and Gaming Control Commission in April 2025 following a cease-and-desist notice related to its Sports Event Trading product.
As of June 3, 2025, 12:00 UTC, Bitcoin (BTC) is trading at $36,450, with a 1.5% increase in 24-hour trading volume, according to CoinMarketCap.