Crypto.com will stop offering sports event contracts in Nevada by next Monday, Nov. 3, following a court judgment outlawing the contracts, the Nevada Gaming Control Board wrote to industry stakeholders Friday. In a written explanation of an announced decision, U.S. District Court Judge Andrew P. Gordon Oct. 14 dismissed Crypto.com’s request for an injunction against the state.
So far, two federal courts have prevented a prediction market from operating within a state’s borders. In Maryland, in which a district judge decided that Kalshi must stop selling sports event contracts, the state agreed to allow it to operate until there is resolution in the court dispute.
Nevada state regulators did not agree to the same setup, and Crypto.com will have to pull down its sporting event services until its current appeal is decided. According to letter, posted on X by The Nevada Independent‘s Howard Stutz late Friday afternoon, “Crypto.com will no longer hold open positions in sporting event contracts for Nevada citizens and will not permit new contracts to be opened.”
ALSO READ: Crypto.com will discontinue issuing sports event contracts in Nevada after losing in federal court.
Crypto.com will have to geofence
To meet the conditions of the ruling, Crypto.com will have to geofence the state of Nevada to keep its products out. The topic of geofencing has come up in Kalshi’s cases against states and tribes several times, since the business has deemed the cost of geofencing out particular states or Indian reserves exorbitant. Digital sports betting operators, however, are required to install geofences to segregate legal and non-legal jurisdictions or to keep wagering systems off federal land.
“If a prediction market chooses to adopt geolocation voluntarily, they gain the same protections and the added benefit of deep location-based insights to fight fraud and strengthen their business,” a GeoComply spokesperson told InGame via email. “GeoComply works with companies of all sizes across a wide range of industries. Fraud prevention and compliance should never be viewed as a barrier to entry. It is an investment in consumer protection, regulatory trust, and long-term sustainability. Our customers consistently find that the value our tools deliver far outweighs the cost of implementation.”
Suitability at Risk
The NGCB sent a letter to licensees in early October, stating that it considers the offering of sports event contracts to be a violation of state law, and that it reserves the right to “call into question” a licensee’s suitability if it offers the contracts in Nevada, partners with an entity offering sports event contracts in Nevada, or offers or partners with an entity offering such contracts in violation of another state’s wagering laws.
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