Crypto.com and Novig Sue Missouri Over Sports Prediction Market Crackdown

TLDR

• Crypto.com’s exchange and Novig filed separate federal lawsuits against Missouri on Oct. 16.
• Both want to stop the state from enforcing sports betting laws on their event contracts.
• Kalshi, Polymarket, Robinhood and Underdog got the same letters but had not sued as of Sunday.
• Crypto.com says Missouri sent its letter to the wrong company and has no licenses left to give.
• Federal appeals courts are split, and a related Kalshi case is pending before the Eighth Circuit.

---

Crypto.com’s prediction market exchange and Novig have filed separate federal lawsuits against Missouri officials. They want to stop the state from enforcing its sports betting laws against their event contracts.

🔴 https://t.co/7iQSiZRMz7, Novig sue Missouri over sports wagering cease-and-desist ordershttps://t.co/7iQSiZRMz7‘s prediction market exchange and Novig filed federal lawsuits Friday to block Missouri from enforcing its sports wagering laws against their event contracts.… pic.twitter.com/twijhRSSa0

— NewsTongue (@NewsTongueX) October 18, 2026

Both complaints were filed on Oct. 16. They challenge cease-and-desist letters sent by Missouri Attorney General Catherine Hanaway in September.

Companies cannot repackage sports bets as ‘event contracts’ to evade Missouri law.
 
Polymarket, Kalshi, Novig, Crypto​.com, Underdog, and Robinhood are not licensed to offer sports wagering in Missouri. Until they are licensed by the Missouri Gaming Commission, we are demanding… pic.twitter.com/KqeH1rGjJn

— Attorney General Catherine L. Hanaway (@AGCHanaway) September 18, 2026

The letters went to six prediction market operators. Besides Crypto.com and Novig, the list included Kalshi, Polymarket, Robinhood and Underdog.

As of Sunday, the other four had not sued in either of Missouri’s federal districts, according to court records reviewed by The Block.

What Missouri Is Demanding

Hanaway sent the letters on Sept. 16 and 17. Each company had 30 days to stop offering sports event contracts or get a license from the Missouri Gaming Commission.

Licensed operators must pay a 10% tax on gross sports betting receipts. They must also stop anyone under 21 from placing wagers.

Missouri voters approved legal sports betting in November 2024. Wagering began on Dec. 1, 2025.

“Companies cannot repackage sports bets as ‘event contracts’ to evade Missouri law,” Hanaway said on X. Her office said five of the six firms let users under 21 take part or lacked enough safeguards.

Crypto.com Says the Letter Went to the Wrong Company

North American Derivatives Exchange runs Crypto.com’s OG prediction markets platform. It filed its case in the U.S. District Court for the Western District of Missouri.

The exchange argues the Commodity Exchange Act gives the Commodity Futures Trading Commission exclusive jurisdiction over its contracts. It seeks a declaratory judgment and a permanent injunction.

The complaint says Hanaway’s letter was addressed to Foris DAX, Inc. instead of the exchange. It also says a license is not an option because Missouri allows only two direct mobile sports wagering licenses, and both are taken.

Hanaway’s letter also said the platform lets users as young as 18 trade sports contracts. Crypto.com launched OG in February 2026.

Novig Points to a Pending Appeal

Novig filed in the Eastern District of Missouri through Ludlow Exchange LLC. It asks for preliminary and permanent injunctions.

Novig wants the court to preserve the status quo while the Eighth Circuit hears an appeal in a Kalshi case from Iowa. The Sixth and Ninth Circuits have ruled against Kalshi, while the Third Circuit sided with it.

Novig has also sued officials in New York, Massachusetts, Washington, New Mexico and Wisconsin. In July, it became the New York Mets’ official prediction market partner.

Kalshi was the first to respond to Missouri, and the attorney general’s office described ongoing discussions with the company on Oct. 2. Underdog sued Connecticut last month over a similar crackdown.

Novig’s Wisconsin case has a preliminary pretrial conference set for Oct. 20. The Missouri docket does not show that a court has granted either injunction.