Crypto.com and Novig have each sued Missouri officials in federal court, arguing that the Commodity Exchange Act gives the CFTC exclusive authority over their sports event contracts and so pre-empts state gambling law.
Both suits were filed on 16 October, after the 30-day deadline in the state's cease-and-desist letters had lapsed. Crypto.com's suit was filed through the North American Derivatives Exchange, the CFTC-registered entity behind its prediction markets, in the Western District of Missouri. Novig's suit was filed through its exchange operator, Ludlow Exchange LLC, in the Eastern District.
Crypto.com seeks a declaratory judgment and a permanent injunction. Novig seeks a preliminary and permanent injunction.
The letters behind the suits
Attorney General Catherine Hanaway's office sent cease-and-desist letters in mid-September to six companies: Robinhood, Underdog, Kalshi, Novig, Polymarket and Crypto.com. Reports give 16 and 17 September as the dates. Each company was told to stop offering sports event contracts to Missouri residents, or to obtain authorisation from the Missouri Gaming Commission and pay the state's 10% wagering tax.
Hanaway wrote on X that "companies cannot repackage sports bets as 'event contracts' to evade Missouri law."
The companies' arguments
The complaints argue federal pre-emption. Crypto.com's filing also disputes the letter itself, saying it was addressed to Foris DAX, Inc. rather than to the exchange. It argues that licensing is not a realistic option, because the state constitution allows only two direct mobile sports wagering licences and both have already been awarded. These are the companies' claims, and no court has ruled on them.
Who has not sued
The Block reviewed court records and found that Kalshi, Polymarket, Robinhood and Underdog had not filed suit in either Missouri federal district as of the weekend. The attorney general's office described "ongoing discussions" with Kalshi, as reported by Spectrum News on 2 October. Underdog sued Connecticut in September over a similar crackdown.
Why the forum matters
Missouri became the 39th state with legal online sports betting when it launched on 1 December 2025 ([[missouri-online-sports-betting-live]]). That is the regulated market the letters say event contracts are bypassing. The suits ask a federal court to decide whether a CFTC-registered contract can sit outside state licensing altogether.
The courts are split on that question nationally. A federal judge in Connecticut denied Kalshi's injunction bid, ruling its sports event contracts are "at bottom, they are sports wagers" ([[kalshi-connecticut-injunction-denied]]). A related Kalshi case is pending before the Eighth Circuit, and Novig's filing reportedly seeks protection while that case is pending. Connecticut's cease-and-desist action against Polymarket and Robinhood followed the same pattern ([[connecticut-prediction-markets-cease-and-desist]]).
What to watch
The first ruling on a preliminary injunction will show whether either court is willing to block enforcement while the Eighth Circuit decides. Until then, Kalshi, Polymarket, Robinhood and Underdog remain the companies to watch for a Missouri filing or a settlement.