Crypto.com withdraws sports event contracts across nine US states | Yogonet International
Summary
Crypto.com has pulled sports event (prediction market) contracts in at least nine US jurisdictions amid a wave of state enforcement actions, cease-and-desist orders and litigation. The company confirmed it is not live with sports markets in Arizona, Michigan, Maryland, Massachusetts, Illinois, New Jersey, Nevada and Ohio, and that it does not service New York. Arizona saw a staged removal of contracts on 2 and 12 December. Several other states have either issued formal notices or launched investigations into prediction-market products that regulators often liken to unlicenced sports betting.
Nevada refused Crypto.com a preliminary injunction against the Nevada Gaming Control Board in October, after which Crypto.com stopped offering sports contracts there. Arizona has extended scrutiny to licensed partners, issuing a notice of intent to revoke Underdog’s fantasy sports operator licence over its prediction-market tie-up with Crypto.com. Connecticut, meanwhile, issued cease-and-desist notices to multiple operators but Crypto.com still offers products there. Fanatics and Underdog have partnered with Crypto.com for their markets in many states, while Kalshi has argued in court that state-level geofencing is impractical and costly.
Key Points
- Crypto.com has withdrawn sports event contracts in multiple states amid regulatory enforcement and litigation.
- The affected states include Arizona, Michigan, Maryland, Massachusetts, Illinois, New Jersey, Nevada and Ohio; Crypto.com also does not service New York.
- Nevada denied a preliminary injunction, prompting Crypto.com’s suspension in that state; Arizona removed products in early and mid-December.
- Arizona’s enforcement actions have reached licensed partners: a notice of intent to revoke Underdog’s licence was issued over its link to Crypto.com’s markets.
- Some states (Arkansas, Louisiana, others) have issued formal opinions or warnings that prediction markets may be illegal without a wagering licence.
- Connecticut and several other jurisdictions have issued cease-and-desist notices to prediction-market operators, though availability varies by state.
- Kalshi has warned geofencing is costly and complex; different operators are taking divergent approaches to state rules.
Why should I read this?
Short version: if you follow sports betting, crypto markets or gaming regulation, this is big. Regulators across the US are actively treating prediction markets like unlicenced wagering and operators are pulling products or being sued. It signals a shift from experimentation to enforcement — and that could reshape partnerships, product rollouts and where these markets can legally operate. We’ve read the mess so you don’t have to.
