Crypto.com and Novig Sue Missouri Over Sports Event Contracts
On Friday 16 October 2026, with Missouri's 30 day ultimatum about to expire, two of the six prediction markets it targeted chose a federal courtroom over a licence application. The other four have not followed, apparentlu.
Attorney General Catherine Hanaway's letters, dated 16 and 17 September, gave six prediction market operators a choice. They could stop offering sports event contracts to Missourians within 30 days. Or they could get a licence from the Missouri Gaming Commission and pay the state's 10% wagering tax. Two companies, Crypto.com's exchange and Novig, picked a third door. On Friday 16 October they filed separate federal lawsuits, as the clock ran out.
Their argument is the one that now follows prediction markets from state to state. Both say the Commodity Exchange Act gives the federal CFTC exclusive jurisdiction over their contracts, which leaves no room for state gambling law. Novig, which sued in the Eastern District of Missouri through its exchange operator Ludlow Exchange, calls its contracts swaps. The exchange behind Crypto.com's platform filed in the Western District. Hanaway's office sees something simpler: unlicensed sports wagering in a state where voters approved the legal kind in November 2024. Her line is that you cannot repackage a sports bet as an event contract and walk past the law.
Then comes the number. Two. According to Crypto.com's exchange, that is how many direct mobile sports wagering licences the Missouri constitution allows, and both have already been awarded. So the complaint says the licence route is closed, whatever the letter suggests. It adds that the letter was addressed to the wrong company, Foris DAX, Inc., and not to the exchange running the contracts. Six firms told to apply for a licence that, by one firm's account, does not exist. GLUWUWULUGU.
The quiet part is who stayed home. As of Sunday 18 October, The Block's review of court records showed no suit from Kalshi, Polymarket, Robinhood or Underdog in either Missouri federal district. They received the same letters. The Post does not know why they are waiting, and none of the four had commented when The Block asked. Federal courts remain split on preemption, and one report ties Novig's move to a related Kalshi dispute still before the 8th Circuit. Two firms pushed their chips forward. Four are quietlu watching the felt.
Would youluwu file first, or let someone else post the first blind?
The Spirit likes a table where the big players disagree about whether the game is even legal, and this one has a judge on each side of the state. GASSSSITTTT, for whoever sits down next.
Will Kalshi, Polymarket, Robinhood or Underdog sue Missouri by 19 Dec?
Settles on 19 December 2026. Yes if at least one of Kalshi, Polymarket, Robinhood or Underdog files a federal lawsuit against Missouri officials over sports event contracts by 2026-12-19, No otherwise, according to federal court records on CourtListener on that date.
