Crypto.com and Novig sue the state of Missouri, seeking to overturn the ban on sports event contracts.

Crypto.com’s prediction market trading platform and Novig filed a lawsuit against Missouri officials in federal court last Friday, seeking a judge’s order to block the state’s enforcement of its sports event contracts. Earlier, Missouri Attorney General Catherine Hanaway sent cease-and-desist letters to six platforms including the two in September, ordering them to either stop offering sports event contracts to state residents within 30 days or obtain a state license and pay a 10% tax. Crypto.com’s lawsuit notes the letter was incorrectly addressed to Foris DAX, Inc. instead of the trading platform itself, and that Missouri’s constitution only allows two mobile sports prediction licenses – both already issued – making obtaining a license unfeasible. The two platforms argue the Commodity Exchange Act grants the CFTC "exclusive jurisdiction," which preempts state law. Notably, Kalshi, Polymarket, Robinhood, and Underdog – which also received cease-and-desist letters in September – had not filed suit in Missouri federal court as of Sunday; Kalshi had previously been in "ongoing discussions" with the attorney general’s office. Currently, multiple U.S. federal appeals courts are divided on whether "federal law preempts state regulation": the Sixth and Ninth Circuits ruled against Kalshi, while the Third Circuit supported it. Given the Eighth Circuit (which covers Missouri) is hearing a similar appeal in the Kalshi case from Iowa, Novig has requested the court to issue a preliminary injunction during the litigation to maintain the status quo.