Crypto.com, Novig Fire Back at Missouri After C&Ds

• The prediction market operators have both sued Missouri
• The companies filed lawsuits in response to receiving a cease-and-desist notice from the Missouri Attorney General
• Novig and Crypto.com both assert Missouri has no authority over their federally regulated sports event contracts

Crypto.com and Novig have both sued Missouri and Attorney General Catherine Hanaway after receiving cease-and-desist notices to halt the trading of sports event contracts in the Show-Me State.

Both operators assert Missouri and Hanaway have no authority over their federally regulated sports event contracts, noting Congress empowered the Commodity Futures Trading Commission (CFTC) with exclusive jurisdiction over DCMs.

The attorney general’s office sent cease-and-desist notices to Kalshi, Polymarket, Robinhood, Underdog, Novig, and Crypto.com to prohibit unlicensed trades of sports event contracts in the Show-Me State.

Missouri Cannot Regulate Sports Event Contracts

The crux of both lawsuits is similar to numerous others that have been filed throughout the U.S. over the last several years. Prediction market companies claim their sports event contracts – and all event contracts – can only be regulated by the CFTC.

“Missouri’s regulation of trading on DCMs is also preempted because Congress has fully occupied the field of regulating federally registered DCMs, thereby preempting any overlapping state laws including state licensing or registration conditions that Missouri might purport to apply to OG.com. Because OG.com’s event contracts are lawfully traded on a CFTC registered DCM, federal law overrides state licensing or registration conditions that might otherwise apply, including those cited by the State Attorney General in the C&D Letter,” counsel for Crypto.com wrote in its lawsuit.

In the cease-and-desist notices, the attorney general’s office notes the operators need to prohibit the trades of sports event contracts within 30 days of Sept. 16, 2026, or the state will “pursue available enforcement actions.”

Hanaway noted that licensed sports betting operators in Missouri pay a 10% tax on adjusted sports betting revenues and pay a licensing fee of $500,000. Prediction market operators have so far not paid their fair share to the state for sports event contracts being traded in Missouri, according to the cease-and-desist notices sent out to operators.

Counsel for Novig reminded Missouri that its event contract offerings are “swaps” as defined by the Commodity Exchange Act, which can only be traded on federally regulated exchanges and “subject to the exclusive jurisdiction of the CFTC.”

Operators Seeking Relief

Both operators seeking a preliminary and permanent injunction prohibiting Missouri from enforcing its state gambling laws against the companies event contract offerings. Additionally, both operators seek any relief the court deems “just and proper.”

“OG.com brings this action to obtain declaratory and injunctive relief to protect its right to offer event contracts pursuant to federal law and regulation. Indeed, any enforcement action by Missouri would be meritless, and any attempted enforcement efforts would be preempted by the CEA,” counsel for Robinhood wrote.