Crypto.com sued the Maryland Lottery and Gaming Control Commission in response to the agency’s cease-and-desist orders against sports event contracts. The company argues that federal rules govern its derivatives activity; Maryland has said the contracts amount to unlicensed sports betting.
Crypto.com’s lawsuit challenges Maryland’s authority over sports event contracts that the state calls unlicensed sports betting.
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The US Supreme Court has yet to decide whether to review prediction market litigation involving Kalshi. Legal observers warned that declining review could leave conflicting appeals court decisions unresolved and operators facing separate state disputes over the regulatory status of sports event contracts.
A report dated 12 October 2026 notes that the justices have so far given no indication of whether they will take up the Kalshi prediction market disputes. In the view of legal observers quoted in that report, refusing the petitions would probably push operators into a state-by-state contest over sports event contracts that varies from jurisdiction to jurisdiction.
The CFTC issued two proposals concerning federal oversight of event contracts. The proposals would classify event contracts as swaps while prohibiting traditional gambling, with the expanded definition covering contracts linked to culture, weather, politics and sport.
The CFTC has sent two proposed rules to the White House Office of Management and Budget for review, reportedly earlier this week. One would exclude casino-style gambling from the definition of a swap; the other would classify event contracts as swaps and follow the standard public-comment process.
The CFTC submitted two proposed rules to the White House Office of Information and Regulatory Affairs for review. One would exclude casino-style products from the definition of swaps, while the other would include event contracts; both remain under review.
The US Court of Appeals for the Sixth Circuit ruled that Ohio and Tennessee can apply state gambling laws to event contracts in a case involving Kalshi. Judge Julia Smith Gibbons said Kalshi had not shown that its sports products qualified as swaps under federal law. Kalshi said it expects further legal review to overturn the ruling.