Robinhood

Circuit

Spectrum

<h2 id="tldr">TLDR</h2>
<ul>
 <li>Crypto.com’s prediction market exchange and Novig sued Missouri officials in federal court on Friday over sports event contracts.</li>
 <li>Missouri Attorney General Catherine Hanaway sent cease-and-desist letters to six companies in September, giving them 30 days to comply.</li>
 <li>Kalshi, Polymarket, Robinhood and Underdog have not filed suit in Missouri, according to court records.</li>
 <li>Crypto.com’s exchange says the letter went to the wrong company and that no Missouri sports betting licenses are left.</li>
 <li>Federal appeals courts are split on whether federal law overrides state gambling laws for these contracts.</li>
</ul>
Crypto.com’s prediction market exchange and Novig have taken Missouri to federal court. The two companies filed lawsuits on Friday to stop the state from enforcing its sports wagering laws against their sports event contracts.
The suits came as deadlines in cease-and-desist letters from Missouri Attorney General Catherine Hanaway ran out. Four other companies that got the same letters have not sued.
<h2 id="missouri-orders-six-companies-to-stop">Missouri Orders Six Companies to Stop</h2>
Hanaway sent the letters on Sept. 16 and 17 to Crypto.com, Novig, Kalshi, Polymarket, Robinhood and Underdog. Each company had 30 days to stop offering sports event contracts to people in Missouri.
The other option was to get a license from the Missouri Gaming Commission and pay the state’s 10% wagering tax. The commission has overseen legal sports betting since voters approved it in November 2024.
Her letter to Crypto.com also said the platform lets users as young as 18 trade. Missouri’s minimum age for sports betting is 21.
“Companies cannot repackage sports bets as ‘event contracts’ to evade Missouri law,” Hanaway said in a post on X.
<div class="embed-x">
 <blockquote class="twitter-tweet">
 Companies cannot repackage sports bets as ‘event contracts’ to evade Missouri law. &nbsp; 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… <a href="https://t.co/KqeH1rGjJn" rel="noopener noreferrer nofollow">pic.twitter.com/KqeH1rGjJn</a>
 — Attorney General Catherine L. Hanaway (@AGCHanaway) <a href="https://x.com/AGCHanaway/status/2100980672554815597?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">September 18, 2026</a>
 </blockquote>
</div>
<h2 id="what-the-lawsuits-say">What the Lawsuits Say</h2>
North American Derivatives Exchange runs Crypto.com’s prediction markets platform and is registered with the Commodity Futures Trading Commission (CFTC). It filed its lawsuit in the Western District of Missouri.
The suit argues that the Commodity Exchange Act gives the CFTC “exclusive jurisdiction” over its contracts. It says this federal law overrides state gambling law. The exchange is asking for a declaratory judgment and a permanent injunction.
The complaint also says Hanaway “incorrectly addressed” her letter to Foris DAX, Inc. instead of the exchange. It adds that getting a sports betting license is not possible. Missouri’s constitution allows only two direct mobile sports wagering licenses, and both have been awarded.
Novig filed its lawsuit in Missouri’s Eastern District through its exchange operator, Ludlow Exchange LLC. The company is asking for both a preliminary and a permanent injunction. Novig has already sued officials in several other states, including Wisconsin.
Novig argues the court should keep things as they are while a related appeal moves forward. The 8th Circuit, which covers Missouri, is hearing an appeal on the same legal question in a Kalshi case from Iowa.
Other federal appeals courts have reached different answers on whether federal law overrides state gambling laws for sports event contracts. The 6th and 9th Circuits ruled against Kalshi, while the 3rd Circuit sided with it.
Kalshi was the first of the six companies to respond to Hanaway’s letters. On Oct. 2, Spectrum News reported that the attorney general’s office described “ongoing discussions” with the company.
Underdog sued Connecticut last month over a similar crackdown. It has not taken Missouri to court.
Crypto.com, Novig and the Missouri attorney general’s office did not immediately respond to requests for comment.
As of Sunday, Kalshi, Polymarket, Robinhood and Underdog had not filed suit in either of Missouri’s federal districts, according to court records reviewed by The Block. The four firms did not immediately respond to requests for comment.
The post <a href="https://blockonomi.com/crypto-com-and-novig-take-missouri-to-court-while-robinhood-and-kalshi-stay-quiet/" rel="noopener noreferrer nofollow">Crypto.com and Novig Take Missouri to Court While Robinhood and Kalshi Stay Quiet</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.

Crypto.com and Novig Take Missouri to Court While Robinhood and Kalshi Stay Quiet

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