Prediction Market Sites File Suit in Missouri Over Sports-Event Contract Crackdown
Mike Goodpaster Published 22/10/2026
Prediction market sites Novig and Crypto.com filed lawsuits in Missouri over that state's sports-event contract crackdown. These two sites were among six in the prediction market industry that received cease-and-desist orders recently from the Missouri Attorney General's office. The other four sites, Kalshi, Polymarket, Robinhood, and Underdog, so far haven't opted to take any legal action against the Missouri AG's office.
In the suits, the two prediction market companies are asking federal judges to offer them judicial protection. They are seeking to bar the state from affixing its sports wagering laws to prediction market sites operating in the Show Me State.
This Missouri legal action is following a familiar pattern
If these lawsuits feel like a TV rerun, there's a good reason for that. The pattern here has been followed previously in several other states. The attorneys general cite prediction market sports-event contracts as illegal sports betting. They take action, calling for a halt to these sports-event contracts.
In turn, lawyers for the prediction markets counter. They make the argument that prediction markets are federally regulated. They also note that sports-event contracts are derivative swaps and not illegal sports betting. Then it's left for a judge to decide.
North American Derivatives Exchange, the CFTC-registered exchange behind Crypto.com's prediction markets platform, filed its lawsuit in the Western District of Missouri. According to reporting by The Block, the suit makes the argument that the Commodity Exchange Act (CEA) gives the Commodity Futures Trading Commission (CFTC) "exclusive jurisdiction" over its contracts. They further argue that this preempts state gambling law. They are seeking a declaratory judgment and a permanent injunction.
Crypto.com's lawyers also note that obtaining a sports betting license is not an option for the company. Missouri's constitution allows only two direct mobile sports wagering licenses. Both have already been awarded.
Novig filed its lawsuit in Missouri's Eastern District. This was done through the site's exchange operator, Ludlow Exchange LLC. Novig's lawyers are asking for a preliminary and permanent injunction.
The Missouri Attorney General's office confirmed it is in discussions with Kalshi over that company's sports-event contract plans in the state.
A mixed bag of previous outcomes
Crypto.com has also filed suits in Connecticut, Maryland, Nevada, and Washington. Novig added Missouri to a list of states it is suing in federal court. The other states include Wisconsin, New York, Massachusetts, New Mexico, and Washington.
In previous rulings of this kind, federal courts have leaned in both directions. Both the Sixth and Ninth Circuit Courts ruled against Kalshi. However, the Third Circuit Court sided with Kalshi in its suit against New Jersey.
Missouri AG lays down the law
In a letter dated September 18, Missouri AG Catherine Hanaway sent cease-and-desist orders to each of the aforementioned six prediction market sites. The sites were given 30 days to comply with the order.
“Missourians voted for a safe, well‑regulated sports wagering market that supports public education and addresses problem gambling," Hanaway said in a statement. "Companies cannot repackage sports bets as ‘event contracts’ to avoid Missouri law."
Hanaway is also adamant that all forms of gambling in Missouri should have a minimum legal age of 21. Some prediction market sites are open to players as young as 18.
"We will enforce the rules voters approved and protect consumers," Hanaway said. "Any company that wants to offer sports wagering in Missouri must be licensed by the Missouri Gaming Commission, pay the required taxes and fees, and ensure no one under 21 can place a bet.”