US States Take Aim at Crypto Prediction Market Betting

The decision represents the most significant legal blow yet to crypto-powered betting platforms in the United States, and it raises questions about how regulators worldwide — including in the UK — may approach similar services.

What This Means for Crypto Casino Players

Although this crackdown targets US-based operations, the regulatory direction matters for UK crypto bettors too. Platforms like Polymarket are accessible globally, and the legal arguments being tested in American courts could influence how the UK Gambling Commission and the Financial Conduct Authority choose to categorise crypto prediction contracts. Currently, no prediction market platform holds a UKGC licence, and no UK-regulated operator offers crypto as a deposit method.

UK players looking for established options to bet with cryptocurrency can explore crypto sports betting platforms that accept deposits in Bitcoin, Ethereum, and other major coins. These bookmakers operate under international licensing frameworks such as Curaçao eGaming. They are not regulated by the UK Gambling Commission.

A Coordinated US Regulatory Offensive

The Massachusetts geoblocking order is one piece of a much broader state-led offensive. Attorneys general from 39 US states have jointly petitioned a federal court to confirm that individual states retain authority over sports betting regulation, pushing back against the CFTC's assertion that prediction market contracts fall under its exclusive federal oversight.

Enforcement actions have spread rapidly. Tennessee directed Kalshi, Polymarket, and Crypto.com to cease all sports contract offerings, cancel outstanding positions, and return user funds. Nevada's gaming regulator issued its own cease-and-desist order. Across the country, at least 11 states have formally challenged prediction market operators, with lawsuits, injunctions, and geofencing orders piling up.

At the heart of the dispute is a jurisdictional clash: the CFTC argues that prediction contracts are financial derivatives under its purview, while states maintain they are straightforward sports wagers that must comply with local gambling law. Courts have delivered contradictory rulings, setting the stage for a potential Supreme Court case.

What to Watch

The outcome of the US jurisdictional battle will likely set a precedent watched closely by regulators in Europe and the UK. Kalshi is fighting roughly 20 lawsuits simultaneously, while a newly formed industry coalition — including Crypto.com, Coinbase, and Robinhood — lobbies for federal-level regulation that would pre-empt state gambling laws entirely. For crypto betting enthusiasts on both sides of the Atlantic, the regulatory landscape is evolving rapidly and bears close monitoring.