Quick answer: In the Missouri prediction market fight, Crypto.com’s CFTC-registered exchange and Novig sued state officials in federal court on Oct. 16, 2026, to stop the state from treating their sports event contracts as illegal betting. Kalshi, Polymarket, Robinhood and Underdog got the same letters but had not sued as of Oct. 18, per The Block.
The Missouri prediction market fight has moved to federal court. Crypto.com’s exchange and Novig sued state officials on Friday, Oct. 16, 2026, to stop Missouri from enforcing its gambling laws against their sports event contracts, while four other targeted firms have not sued, according to a review of court records by The Block.
What happened in the Missouri prediction market dispute
Missouri Attorney General Catherine Hanaway sent cease-and-desist letters to six platforms in September. The letter to Crypto.com is dated Sept. 16, and the letter to Novig is dated Sept. 17.
Each letter offered two options. First, the firm could stop offering sports contracts to people in Missouri. Second, it could get a license from the Missouri Gaming Commission and pay state taxes and fees. The state’s wagering tax is 10%. In addition, the Crypto.com letter said the platform must stop serving users under 21, since it lets 18-year-olds trade.
However, both firms answered with lawsuits instead. Novig filed through its exchange operator, Ludlow Exchange LLC, in the Eastern District of Missouri. It asks for preliminary and permanent injunctions, The Crypto Times reported.
North American Derivatives Exchange, the CFTC-registered exchange behind Crypto.com’s prediction markets, sued in the Western District. Similarly, it wants a declaratory judgment and a permanent injunction. Gaming lawyer Daniel Wallach noted that the split filing means the two cases cannot go to the same judge, per Covers.
Why the Missouri prediction market case matters
Both suits rest on the same claim. The firms say the Commodity Exchange Act gives the CFTC exclusive power over contracts listed on federally registered exchanges. In other words, they argue that federal rule overrides state gambling law.
Missouri disagrees. For example, its letters cite a string of 2026 rulings against Kalshi, including decisions from the 6th and 9th Circuits. The 3rd Circuit, however, sided with Kalshi. As a result, the federal appeals courts are split.
That split is why Missouri’s location matters. The state sits in the 8th Circuit, which has not yet decided a prediction market case. Novig wants the status quo kept while the 8th Circuit hears an appeal in a Kalshi case from Iowa. Meanwhile, Missouri’s own letters cite a Sept. 8, 2026 ruling against Kalshi from the Southern District of Iowa.
Our read: the lawsuits also expose a weak spot in Missouri’s offer. Crypto.com’s complaint says a license is not a real option, because the state constitution allows only two direct mobile sports wagering licenses and both are already taken. If a judge accepts that, then the choice becomes “stop or sue.” In turn, that framing can help a firm argue it faces real harm without an injunction.
Data and context: who sued and who waited
| Platform | Missouri letter | Missouri lawsuit (as of Oct. 18) |
|---|---|---|
| Crypto.com (NADEX) | Sept. 16 | Filed Oct. 16, Western District |
| Novig (Ludlow Exchange) | Sept. 17 | Filed Oct. 16, Eastern District |
| Kalshi | September | None filed |
| Polymarket | September | None filed |
| Robinhood | September | None filed |
| Underdog | September | None filed |
So far, the four holdouts did not reply to The Block’s requests for comment, so their reasons are not public. Kalshi was the first to respond to the letters, and the attorney general’s office described “ongoing discussions” with it, Spectrum News reported on Oct. 2. Likewise, Underdog sued Connecticut last month over a similar crackdown but has not gone to court in Missouri.
For crypto firms, the stakes go beyond one state. Event contracts have become a growth line for exchanges, and CFTC approvals are spreading. For instance, we covered how Blockchain.com won a CFTC prediction markets license. The CFTC’s courtroom record is also mixed, as a judge showed when refusing to undo the Gemini settlement.
Overall, markets barely reacted. Crypto.com’s CRO token traded at $0.0549 at 19:55 UTC on Oct. 18, down 4.4% in 24 hours, per CoinGecko. By comparison, Bitcoin was down 0.9% at $80,842 at the same time, so the drop looks like part of a broad Sunday dip rather than a reaction to the case.
What to watch next
- Injunction rulings. Novig asked for a preliminary injunction. A first ruling in either district would set the tone for the other.
- State enforcement. The deadlines have now passed. Hanaway’s letters warned that Missouri will take legal action against firms that do not comply.
- The 8th Circuit. Its ruling in the Iowa Kalshi appeal could decide the Missouri cases in practice.
- The holdouts. Watch for a Kalshi deal with the state, new lawsuits, or platforms quietly blocking Missouri users.
Finally, with appeals courts split, the question may end up at the U.S. Supreme Court. Covers suggested operators may be holding out for exactly that.
Missouri Prediction Market Lawsuit FAQ
Why did Crypto.com and Novig sue Missouri?
They want federal courts to stop Missouri from applying state gambling laws to their sports event contracts. Both say the Commodity Exchange Act gives the CFTC exclusive authority over contracts on registered exchanges. They filed on Oct. 16, 2026, as the 30-day deadlines in Missouri’s September letters ran out.
Which prediction markets did Missouri target?
Missouri’s attorney general sent cease-and-desist letters to six platforms in September 2026: Crypto.com, Novig, Kalshi, Polymarket, Robinhood and Underdog. Only Crypto.com’s exchange and Novig had sued in Missouri as of Oct. 18, according to The Block’s review of court records.
Are sports event contracts legal in Missouri?
That is the open question. Missouri says they are unlicensed sports betting, while the platforms say only the CFTC can regulate them. No court has ruled on the Missouri cases yet. Also, federal appeals courts are split on the issue.
Sources
- The Block: Crypto.com, Novig sue Missouri over sports event contracts
- Covers: Novig, Crypto.com sue Missouri after cease-and-desist order
- The Crypto Times: Novig sues Missouri officials ahead of deadline
- Missouri Attorney General: cease-and-desist letter to Crypto.com (Sept. 16, 2026)
- Missouri Attorney General: cease-and-desist letter to Novig (Sept. 17, 2026)
- Missouri Attorney General: press release on prediction market orders
- CoinGecko: Cronos (CRO) price
This article is for information only and is not financial or legal advice. Crypto and prediction markets carry risk; always do your own research.
