Crypto.com’s prediction market exchange and Novig have filed separate federal lawsuits against Missouri officials, asking courts to block state enforcement of sports betting laws against their event contracts.
Both complaints were filed on Oct. 16, challenging cease-and-desist letters sent by Missouri Attorney General Catherine Hanaway in September. The letters targeted six prediction market operators: Crypto.com, Novig, Kalshi, Polymarket, Robinhood and Underdog. Hanaway’s office argued that the platforms were offering unlicensed sports wagering, and said companies ‘cannot repackage sports bets as event contracts to avoid Missouri law.’ The state gave operators 30 days to obtain gambling licenses or stop offering the contracts, requiring a 10% tax on gross sports betting receipts and a minimum betting age of 21. As of Sunday, the other four operators had not sued in either of Missouri’s federal districts.
Crypto.com’s suit, filed by North American Derivatives Exchange in the Western District of Missouri, argues the Commodity Exchange Act gives the CFTC exclusive jurisdiction over the contracts. The exchange is seeking a declaratory judgment and permanent injunction. It also says Hanaway’s letter was incorrectly addressed to Foris DAX, Inc. rather than the entity operating the regulated market, and notes Missouri’s framework has only two direct mobile sports wagering licenses, both already awarded.
Novig filed through Ludlow Exchange LLC in the Eastern District of Missouri, seeking preliminary and permanent injunctions. It wants the court to preserve the status quo while the Eighth Circuit considers a related Kalshi appeal from Iowa. Federal appeals courts are divided: the Sixth and Ninth Circuits have ruled against Kalshi, while the Third Circuit sided with the company. Missouri’s sports betting framework began after voters approved Amendment 2 in November 2024, with legal wagering starting Dec. 1, 2025.
