Arizona turns into the ninth state that Crypto.com has stopped providing prediction markets and sports activities contracts in.
As of Tuesday, December 2, for sport occasion contracts and Friday, December 12, for all different prediction markets, Crypto.com now not presents its companies in Arizona, making it the ninth state that it now not operates in, as reported by Sports Betting Dime. Arizona joins Michigan, Maryland, Massachusetts, Illinois, New Jersey, Nevada, Ohio, and New York. Solely on Monday (December 15), Arizona’s regulator notified playing agency Underdog that it intends to revoke its fantasy sports contest license.
A @cryptocom spokesperson has confirmed the corporate now not presents its prediction markets/sport occasion contracts in Arizona.
Making an attempt to verify the precise date when the choices have been pulled from Arizona.
— RLinnehanSR (@RLinnehanSR) December 15, 2025
This comes as the results of pushback from state regulators and authorities our bodies, who argue that prediction market firms like Crypto.com are merely a way for them to supply unlawful sports activities betting with out a license. The states have one after the other issued cease-and-desist notices or launched into lawsuits to ban prediction markets from working inside their limits. These lawsuits are nonetheless ongoing in Maryland, Massachusetts, New Jersey, New York, Nevada, and Ohio, with Crypto.com pausing operations within the meantime.
Why do states like Arizona take situation with prediction markets?
As a closely regulated sector, sports activities betting particularly, though authorized in 39 states, in addition to Washington DC and Puerto Rico, requires varied licenses and particular laws, relying on the state. Nonetheless, prediction markets have sprung up shortly within the grey space outdoors of regulation.
The result’s a battle about who has the appropriate to control sports activities occasion contracts. Crypto.com and its rivals like Robinhood and Kalshi argue that state regulatory our bodies don’t have the appropriate to override or negate the federal government’s authority to control prediction markets. Kalshi particularly has labored extensively with federal our bodies like the US Commodity Futures Trading Commission (CFTC) to sidestep the necessity for state-level regulation.
State our bodies, alternatively, are launching authorized battles with the view that they need to be capable to regulate prediction markets, particularly ones providing sports activities occasion contracts.
ReadWrite has reached out to Crypto.com for additional remark.
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