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), which operates as Crypto.com's North American derivatives business, filed a lawsuit in Nevada's federal court. NADE took this action after receiving a cease-and-desist letter from the Nevada Gaming Control Board (NGCB) on May 20, 2025. The NGCB's letter threatened criminal and civil penalties if Crypto.com continued offering its sports event-related derivative contracts to Nevada residents and set the compliance deadline for 5 p.m. on Wednesday, June 4, 2025. Crypto.com's lawsuit argues the NGCB overstepped its authority when it attempted to regulate these derivatives contracts, claiming the Commodity Exchange Act places these contracts under the exclusive jurisdiction of the federal Commodity Futures Trading Commission (CFTC). Furthermore, Crypto.com asserts the NGCB incorrectly interprets these contracts as "wagering on sporting events" under Nevada gaming laws. Through the lawsuit, Crypto.com seeks a permanent injunction to stop Nevada from enforcing its gaming laws on these contracts and a declaratory judgment affirming federal preemption. The company states in its June 3, 2025, lawsuit that adhering to Nevada’s demands, such as geo-fencing users, would cause "irreparable harm" to its business and could also potentially violate federal rules that require impartial market access. Crypto.com's legal move parallels a similar lawsuit involving predictions marketplace KalshiEX LLC. In that case, U.S. District Judge Andrew Gordon issued a preliminary injunction in April 2025, which blocked Nevada gaming regulators from applying sports wagering laws to Kalshi. Judge Gordon concluded that federal law preempts state authority over CFTC-regulated event contracts, finding Kalshi was likely to succeed 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 must comply with state gaming laws. Notably, the CFTC scrutinized both Crypto.com and Kalshi in February 2025 regarding Super Bowl-related contracts; however, Crypto.com maintains its event contracts are lawful under the CFTC's federal oversight. Coincidentally, Crypto.com | Derivatives North America (CDNA) initiated a similar lawsuit in April 2025, suing the Maryland Lottery and Gaming Control Commission after receiving a cease-and-desist notice for its Sports Event Trading product. On June 3, 2025, CoinMarketCap reported that as of 12:00 UTC, Bitcoin (BTC) was trading at $36,450, and its 24-hour trading volume had increased by 1.5%.