Crypto.com and Novig filed separate federal lawsuits in Missouri on October 16, 2026, seeking to block state enforcement against their sports event contracts. The action follows cease-and-desist orders issued by Attorney General Catherine Hanaway to six platforms, demanding state licensing and a 10% wagering tax. The platforms argue CFTC regulations preempt state gambling laws amid a split among federal federal circuit courts.
Crypto.com lawsuit against Missouri
- ▪Crypto.com's lawsuit states that obtaining a Missouri sports betting license is impossible because Missouri's constitution caps direct mobile licenses at two, both of which have been awarded
- ▪North American Derivatives Exchange, operating Crypto.com's prediction market, filed a lawsuit against Missouri officials in the Western District of Missouri on October 16, 2026
- ▪Crypto.com stated in its complaint that Attorney General Catherine Hanaway incorrectly addressed her cease-and-desist letter to Foris DAX, Inc. instead of North American Derivatives Exchange
- ▪Crypto.com asked a federal court to bar Missouri from enforcing sports wagering laws against its event contracts after Attorney General Catherine Hanaway issued a cease-and-desist deadline
Novig federal lawsuit and injunction request
- ▪Novig, through exchange operator Ludlow Exchange LLC, filed a federal lawsuit against Missouri officials in the Eastern District of Missouri on October 16, 2026
- ▪Novig asked the Eastern District of Missouri court for an injunction while the 8th Circuit Court of Appeals hears an appeal on sports event contract preemption in a Kalshi case from Iowa
Missouri Attorney General cease-and-desist actions
- ▪Missouri Attorney General Catherine Hanaway gave sports event contract operators 30 days to stop offering sports event contracts in Missouri or obtain a Missouri Gaming Commission license and pay a 10% tax
- ▪Missouri Attorney General Catherine Hanaway issued cease-and-desist letters over sports event contracts on September 16 and 17, 2026, to Crypto.com, Novig, Kalshi, Polymarket, Robinhood, and Underdog
- ▪Attorney General Catherine Hanaway's office raised minimum-age concerns against five of six targeted prediction platforms that received her cease-and-desist letters, identifying Crypto.com for allowing 18-year-old users while Missouri requires sports bettors to be 21
Missouri position on event contracts
- ▪Missouri Attorney General Catherine Hanaway publicly stated that companies cannot repackage sports bets as event contracts to evade state law
- ▪Missouri officials treat sports event contracts offered by Crypto.com and Novig as unlicensed sports wagering, requiring state licensing with application fees up to $500,000 and a 10% tax on adjusted gross revenue
Federal preemption legal context
- ▪Crypto.com and Novig argue that their sports event contracts are financial derivative swaps under exclusive CFTC jurisdiction, which preempts Missouri state gambling laws under the Commodity Exchange Act
- ▪Federal appeals courts have split on whether federal law preempts state gambling laws for sports event contracts, with the 6th and 9th Circuits ruling against Kalshi and the 3rd Circuit ruling for Kalshi
Novig background and litigation
- ▪Novig launched its sports-focused, Commodity Futures Trading Commission-regulated prediction market platform on August 4, 2026
- ▪Novig has previously sued state officials in several other states, including Wisconsin
Missouri sports betting legalization background
- ▪Missouri voters approved Amendment 2 on November 5, 2024, legalizing sports wagering and placing regulatory oversight under the Missouri Gaming Commission
- ▪Missouri's official regulated sports betting market launched on December 1, 2025
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