The Nevada Gaming Control Board late Friday announced that Crypto.com, a prediction market operator locked in a legal battle with the state over sports events contracts, has agreed to stop taking action in Nevada after Nov. 3.
Earlier this year, Crypto.com sought a preliminary injunction to enjoin the Board from enforcing Nevada law against its sports events contracts. On October 14, U.S. District Judge Andrew P. Gordon denied that motion, which Crypto.com intends to appeal. In April, Gordon issued a preliminary injunction in favor of Kalshi before the case was fully briefed and legal experts are expecting that to be denied.
In the meantime, the Board has confirmed that after November 3 and until the resolution of its appeal, Crypto.com will not be offering sports event contracts to Nevada residents, Dreitzer said in a notice.
“That means Crypto.com will no longer hold open positions in sports event contracts for Nevada residents and will not permit new contracts to be opened,” Dreitzer said. “As licensees are probably aware, the Board has been working diligently to uphold its charge to protect the safety, morals, good order, and general welfare of the inhabitants of the state, to foster the stability and success of gaming, and to preserve the competitive economy and policies of free competition of the state of Nevada.”
In the notice, Dreitzer said that while the Board continues to seek legal avenues to protect gaming and foster a competitive economy, it is re-affirming and re-issuing the guidance it issued to licensees two weeks ago regarding event contracts offered in Nevada and other states.
“The Board considers sports event contracts, or certain other events contracts, to constitute a wagering activity under (state law),” Dreitzeer said. “Wagering occurs whether the contract is listed on an exchange regulated by the Commodity Futures Trading Commission or elsewhere. Examples of event contracts that the Board specifically considers to be wagering subject to its jurisdiction include event contracts based on the outcome or partial outcome of any sporting or athletic event or other selected events such as the World Series of Poker, the Oscars, esports, and political elections.”
Dreitzer said offerings for sports and other events contracts may be conducted in Nevada only if the offering entity possesses a non-restricted gaming license with sports pool approval in the state and meets the other requirements for sports wagering, including, without limitation, wagering accounts and sports book systems.
“If a Nevada licensee chooses to offer sports and other event contracts in Nevada or decides to partner with other entities offering sports and other event contracts in the state, the Board will consider these developments as it evaluates the suitability of the entity to maintain a Nevada gaming license,” Dreitzer said. “Moreover, if a licensee offers sports and other event contracts in another state without complying with the other state’s restrictions, prohibitions, or licensing regime, partners with another entity that engages in such activities, or acts in violation of a compacted tribal right, the licensee may be subject to discipline under the Gaming Control Act.”
Engaging in unlawful sports wagering in another state or entering into a business relationship with another entity offering unlawful sports wagering in another state “may call into question the good character and integrity” of the licensee, Dreitzer said.
“The Board reminds licensees to be mindful of their obligations to maintain suitability and comply with all applicable laws in all jurisdictions where they operate,” Dreitzer said.