Crypto.com, Novig Sue Missouri Over Prediction Market Restrictions

After Missouri regulators deemed sports-event contracts gambling, Crypto.com and Novig filed a federal lawsuit against the state, according to Yahoo. 

The suits were filed on Friday, Oct. 16, and in separate districts. Ludlow Exchange, which operates as Novig, filed a 42-page complaint in the Eastern District of Missouri against the state's Attorney General, Catherine Hanaway; the Executive Director of the Missouri Gaming Commission, Michael A. Leera; and the MGC Chair, Jan Zimmerman. 

As for Crypto.com, this suit was filed by North American Derivatives, which is an exchange owned by Crypto.com. That suit was filed in the Western District and named the same people. This complaint is 39 pages long. 

Missouri Orders Six Prediction Market Operators to Stop Sports Contracts

This follows the state's decision to deem sports-event contracts gambling and, more importantly, to send cease-and-desist notices to various prediction market platforms, including Robinhood, Underdog, Novig, Kalshi, Crypto.com, and Polymarket. The state wants these companies to obtain an MGC license. Licensed operators in the state pay a 10% tax on gross receipts, and players must be 21 or older. 

"Companies cannot repackage sports bets as 'event contracts' to evade Missouri law," Hanaway wrote on X on Sept. 18.

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 they cease and desist from offering sports contracts to Missourians. Voters chose a safe, well‑regulated market that supports public education and addresses problem gambling, and we will enforce it.

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

Novig said, in its complaint, that they had til Oct. 17 to comply, but as of Monday, no action has been taken. 

Missouri Lawsuits Add to Nationwide Prediction Market Legal Battles

This is just the latest legal battle against prediction markets. Many have occurred, including New Jersey petitioning the Supreme Court for a ruling on them. The Commodity Futures Trading Commission says these contracts are swaps and under its federal oversight, while states argue it's unlicensed gambling. 

Right now, no suits against Missouri have been filed by platforms like Kalshi or Polymarket.