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Crypto.com’s event contract platform OG has filed suit in federal court against Washington’s Attorney General and members of the state’s Gambling Commission.
The company is asking for declaratory and injunctive relief, claiming Washington has no authority to regulate its federally approved event contracts. The move comes after the state targeted Kalshi, another federally regulated exchange, with an injunction earlier this week.
OG argues that the same enforcement is imminent against its platform and says federal law leaves no room for state interference.
OG says federal law overrides state gambling rules
In its complaint, OG stresses that it is a designated contract market regulated by the U.S. Commodity Futures Trading Commission (CFTC), an argument maintained by virtually all prediction market operators in legal battles with state regulators and AGs.
The company says Congress gave the CFTC “exclusive jurisdiction” over derivatives trading to ensure a single national market and warns that Washington’s attempt to classify event contracts as “Illegal Gambling Activities” ignores that federal law preempts state oversight.
The filing points to the Commodity Exchange Act, which Congress amended over decades to expand the scope of federally regulated products and block states from imposing their own rules.
OG argues that Washington’s position would force it to violate federal obligations. “OG cannot comply with both its federal law obligations and any purported obligations under Washington law,” the complaint states, adding that state enforcement “undermines the CEA’s goals of… creating a uniform system of derivatives trading.”
Sports event contracts at the center of dispute
OG lists event contracts, including sports‑related contracts, as part of its offerings. These products allow users to take positions on outcomes such as whether a team wins or loses.
The company notes that the CFTC reviews such contracts and can block them if they are deemed against the public interest. None of OG’s contracts are currently under review or prohibited.
The lawsuit highlights that Washington’s actions against Kalshi, and its public statements labeling prediction markets unauthorized, signal a direct threat to OG
OG goes further than other operators by highlighting the CFTC’s recent intervention in Michigan. It cites the agency’s July 14 emergency order that required Kalshi to honor trades for Michigan customers after a state court tried to unwind those positions.
The operator argues that the order shows how state‑by‑state enforcement collides with the federal system.
According to the company, forcing exchanges to cancel trades or restrict users based on local rulings would distort markets and break federal rules that demand impartial access and orderly trading.
The filing places OG’s case within a wider conflict. This year has seen over a dozen cases from both states and prediction market operators. OG joins Robinhood as the second operator to sue Washington over an imminent threat of enforcement action that could cause “irreparable harm” to its own operations.
