Missouri's attorney general tells six prediction markets their sports contracts are illegal betting; Kalshi, Novig and Crypto.com's exchange sue
Missouri's attorney general says prediction markets' sports event contracts are unlicensed sports betting and ordered six operators to stop. Kalshi, Novig and Crypto.com's exchange sued, saying only federal regulators have jurisdiction over the contracts.
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Published by The Dispute Index editorial teamPublished Updated
Overview
Missouri Attorney General Catherine Hanaway says sports event contracts sold by Kalshi, Polymarket, Crypto.com, Novig, Underdog and Robinhood are unlicensed sports wagering, and ordered the companies to stop or obtain a state license. Kalshi, Novig and the exchange behind Crypto.com's OG platform sued in federal court, saying federal law gives the Commodity Futures Trading Commission exclusive jurisdiction over the contracts.
Read the full background
Missouri voters approved Amendment 2 in 2024, legalizing sports betting under the oversight of the Missouri Gaming Commission. The licensed market opened on Dec. 1, 2025, with a 10% tax on sports wagering revenue and a ban on bets by anyone under 21.
In letters dated Sept. 16 and 17, 2026, and announced on Sept. 18, Attorney General Catherine Hanaway told Polymarket, Kalshi, Crypto.com, Novig, Underdog and Robinhood that their sports event contracts are unlicensed sports wagering under Missouri law. Each letter said the company must stop offering them to Missourians or obtain a Missouri Gaming Commission license, pay state taxes and fees and bar users under 21, and warned of enforcement action. Hanaway's office says federal law does not preempt state law here and that the contracts are not swaps under the Commodity Exchange Act.
The companies say the contracts are traded on exchanges the Commodity Futures Trading Commission has designated, and that federal law gives that agency exclusive jurisdiction over them. On Oct. 16, Novig sued in federal court in St. Louis, and North American Derivatives Exchange, the designated exchange behind Crypto.com's OG prediction market, sued in federal court in Kansas City. Kalshi sued in St. Louis on Oct. 27, after the state's solicitor general told it Missouri would not agree to hold off on enforcement.
Kalshi faces criminal charges in Utah, and Connecticut regulators have also moved against sports prediction markets. Hanaway has also signed an amicus brief asking the Supreme Court to review a Third Circuit ruling in Kalshi's favor.
People in this case
Catherine HanawayDirectly involved
Timeline
4 timeline entries on this page. Dates: September 16, 2026 to October 27, 2026
September 2026
Hanaway sends Kalshi a cease-and-desist letter
Incident
Hanaway's letter says Kalshi operates an unlicensed online sports wagering platform in Missouri and must stop or obtain a Missouri Gaming Commission license, pay state taxes and fees, and stop serving people under 21.
[01]Catherine Hanaway
Hanaway's three-page letter telling Kalshi it operates an unlicensed online sports wagering platform in Missouri and must either stop or obtain a Missouri Gaming Commission license, pay state taxes and fees, and stop serving people under 21.
Cease-and-desist letter from Missouri Attorney General Catherine L. Hanaway to KalshiEX LLC (Sept. 16, 2026) · Catherine HanawayPages 1 to 3Hanaway announces cease-and-desist letters to six prediction markets
Source release
Hanaway's office announces letters to Polymarket, Kalshi, Crypto.com, Novig, Underdog and Robinhood, saying their sports event contracts are unlicensed sports wagering and that failure to comply will result in enforcement action.
[02]Catherine Hanaway
The Missouri attorney general's announcement of cease-and-desist letters to Polymarket, Kalshi, Crypto.com, Novig, Underdog and Robinhood, with Hanaway's statement and links to each letter.
Missouri Attorney General Hanaway Orders Unlicensed Prediction Markets To Cease And Desist Unlawful Sports Wagering · Catherine HanawayFull release[03]Missouri AG targets Polymarket, Kalshi, others in prediction market crackdown
KCTV report on the cease-and-desist letters, with Hanaway's statement and a response from a Polymarket spokesperson.
October 2026
Novig and Crypto.com's OG.com exchange sue Missouri officials
Claim
Novig files suit in federal court in St. Louis and North American Derivatives Exchange, which operates Crypto.com's OG prediction market, files in Kansas City. Both ask the courts to bar Missouri officials from enforcing state gambling law against their event contracts.
[04]Novig
Novig's complaint asking the federal court in St. Louis to bar Hanaway and two Missouri Gaming Commission officials from enforcing Missouri's gambling and sports-wagering laws against its event contracts, which it says fall under the exclusive jurisdiction of the Commodity Futures Trading Commission.
Complaint, Ludlow Exchange, LLC d/b/a Novig v. Hanaway, No. 4:26-cv-01780 (E.D. Mo. filed Oct. 16, 2026), ECF 1 · NovigECF 1, introduction (paragraphs 1 to 4)[05]Complaint, North American Derivatives Exchange, Inc. d/b/a OG.com Prediction Markets v. Hanaway, No. 4:26-cv-00969 (W.D. Mo. filed Oct. 16, 2026), ECF 1
The complaint of the federally designated exchange behind Crypto.com's OG prediction market, filed in federal court in Kansas City. It seeks to stop Hanaway and the Missouri Gaming Commission from regulating or ending its listing of event contracts.
Complaint, North American Derivatives Exchange, Inc. d/b/a OG.com Prediction Markets v. Hanaway, No. 4:26-cv-00969 (W.D. Mo. filed Oct. 16, 2026), ECF 1ECF 1, introduction (paragraphs 1 to 4)Kalshi sues Hanaway and the Missouri Gaming Commission
Claim
Kalshi files suit in federal court in St. Louis, saying Missouri's demands are preempted by the Commodity Exchange Act. Its complaint says Missouri's solicitor general told it that day the state would not agree to hold off on enforcement.
[06]KalshiEX LLC
Kalshi's complaint against Hanaway, the Missouri Gaming Commission and its members, asking the court to bar them from enforcing Missouri's gambling laws against its sports event contracts, which it says the Commodity Exchange Act places under federal jurisdiction.
Complaint, KalshiEX LLC v. Hanaway, No. 4:26-cv-1860 (E.D. Mo. filed Oct. 27, 2026), ECF 1 · KalshiEX LLCECF 1, introduction (paragraphs 1 to 5)
Claims
Claims separate what was said from what is contested. Follow each source for the original wording and context.
What's disputed
Disputed claim
Prediction markets' sports event contracts are unlicensed sports wagering under Missouri law, and federal law does not preempt Missouri's regulation of them.
What is disputed
Kalshi, Novig and the exchange behind Crypto.com's OG platform say the contracts are swaps traded on exchanges designated by the Commodity Futures Trading Commission, which they say has exclusive jurisdiction over them. All three have sued to block enforcement.
Sources (2)
- Missouri Attorney General Hanaway Orders Unlicensed Prediction Markets To Cease And Desist Unlawful Sports Wagering · Catherine HanawayFull release
- Cease-and-desist letter from Missouri Attorney General Catherine L. Hanaway to KalshiEX LLC (Sept. 16, 2026) · Catherine HanawayPages 1 to 3
Disputed claim
KalshiEX LLC
The Commodity Exchange Act gives the Commodity Futures Trading Commission exclusive jurisdiction over sports event contracts traded on a federally designated exchange, so Missouri cannot require Kalshi to stop offering them or obtain a state license.
What is disputed
Hanaway's office says federal courts have ruled that such platforms are subject to state gambling laws and that the contracts do not qualify as swaps. The federal suits by Kalshi, Novig and OG.com are pending.
Sources (2)
- Complaint, KalshiEX LLC v. Hanaway, No. 4:26-cv-1860 (E.D. Mo. filed Oct. 27, 2026), ECF 1 · KalshiEX LLCECF 1, introduction (paragraphs 1 to 5)
- Complaint, Ludlow Exchange, LLC d/b/a Novig v. Hanaway, No. 4:26-cv-01780 (E.D. Mo. filed Oct. 16, 2026), ECF 1 · NovigECF 1, introduction (paragraphs 1 to 4)
Response record
Responses
Choose one response filter, or select All responses to see the full record.
3 matching responses. Newest first.
Catherine HanawayMissouri attorney general, in a statement from her office's spokesperson to Sports Betting DimeDirectly involvedBefore this statement
Sports Betting Dime reports that Kalshi has sued Hanaway after receiving her cease-and-desist notice, and quotes the complaint's argument that no Missouri sports betting license is realistically available to the company. It says a spokesperson for the attorney general's office told the outlet that the rules for all bets should be the same whether they are placed at a sportsbook or through a sports event contract.
"If you are going to bet on the Chiefs beating the Broncos, the rules should be the same regardless of whether the bet is placed through an online prediction market or at the casino. In both situations, it's sports betting - and Missourians voted to subject sports betting to licensing and taxation rules. Attorney General Hanaway will enforce the law, and we are confident the federal courts will not prevent her from doing so"
Defended or excusedResponding to: Prediction markets' sports event contracts are unlicensed sports wagering under Missouri law, and federal law does not preempt Missouri's regulation of them.
Full statement and sources
Responding to Kalshi's lawsuit, a spokesperson for Hanaway's office says the same rules should apply to a sports bet whether it is placed through a prediction market or at a casino, and that the office is confident the federal courts will not stop her from enforcing Missouri law.
After the statement
The spokesperson's statement closes the report.
Why this label?
The reference point is Missouri Attorney General Catherine Hanaway's effort, through cease-and-desist letters in September 2026, to treat prediction markets' sports event contracts as unlicensed sports wagering under Missouri law. The statement defends that effort, saying the contracts are sports betting subject to Missouri's licensing and tax rules.
This label describes the statement's response within the context above.
KalshiEX LLCKalshiEX LLC, plaintiff, in its complaint filed by its lawyersDirectly involvedBefore this statement
The complaint names Hanaway, the Missouri Gaming Commission and the commission's executive director, chairman and commissioners as defendants, each in their official capacities.
"This action challenges the State of Missouri's clear violation of the Supremacy Clause with respect to the regulation of event contracts."
CondemnedResponding to: The Commodity Exchange Act gives the Commodity Futures Trading Commission exclusive jurisdiction over sports event contracts traded on a federally designated exchange, so Missouri cannot require Kalshi to stop offering them or obtain a state license.
Full statement and sources
Kalshi's complaint opens by saying Missouri's treatment of event contracts clearly violates the Supremacy Clause, because federal law gives the Commodity Futures Trading Commission exclusive jurisdiction over contracts traded on its federally designated exchange.
After the statement
The complaint goes on to say the Commodity Exchange Act gives the CFTC exclusive jurisdiction over event contracts traded on a federally designated contract market, and that the CFTC has permitted Kalshi to trade sports event contracts on its exchange. It then describes Hanaway's Sept. 16 letter demanding that Kalshi stop or comply with Missouri's licensing, tax, fee and age rules.
Complaint, KalshiEX LLC v. Hanaway, No. 4:26-cv-1860 (E.D. Mo. filed Oct. 27, 2026), ECF 1 · KalshiEX LLCECF 1, introduction (paragraphs 1 to 5)Why this label?
The reference point is Missouri Attorney General Catherine Hanaway's effort, through cease-and-desist letters in September 2026, to treat prediction markets' sports event contracts as unlicensed sports wagering under Missouri law. Kalshi calls Missouri's action a clear violation of the Supremacy Clause, a condemnation of that effort.
This label describes the statement's response within the context above.
NovigLudlow Exchange, LLC, doing business as Novig, plaintiff, in its complaint filed by its lawyersDirectly involved Before this statement
The complaint says the Commodity Futures Trading Commission designated Novig as a designated contract market on June 16, 2026, and that Novig offers event contracts to customers in Missouri. It describes event contracts as derivative instruments that let parties trade on their predictions about whether a future event will occur.
"In particular, event contracts are quintessential "swaps" as defined by the CEA and therefore can only be traded on federally regulated exchanges that are subject to the exclusive jurisdiction of the CFTC."
Challenged the characterizationResponding to: The Commodity Exchange Act gives the Commodity Futures Trading Commission exclusive jurisdiction over sports event contracts traded on a federally designated exchange, so Missouri cannot require Kalshi to stop offering them or obtain a state license.
Full statement and sources
In its complaint against Hanaway and two Missouri Gaming Commission officials, Novig says the event contracts it lists are swaps under the Commodity Exchange Act and can be traded only on exchanges under the Commodity Futures Trading Commission's exclusive jurisdiction.
After the statement
It adds that Congress granted the CFTC exclusive jurisdiction over such transactions, and later describes Hanaway's Sept. 17 letter threatening legal action unless Novig stops offering sports event contracts to Missourians or obtains a Missouri Gaming Commission license.
Complaint, Ludlow Exchange, LLC d/b/a Novig v. Hanaway, No. 4:26-cv-01780 (E.D. Mo. filed Oct. 16, 2026), ECF 1 · NovigECF 1, introduction (paragraphs 1 to 4)Why this label?
The reference point is Missouri Attorney General Catherine Hanaway's effort, through cease-and-desist letters in September 2026, to treat prediction markets' sports event contracts as unlicensed sports wagering under Missouri law. Novig disputes the premise that its contracts are sports bets, describing them instead as swaps that only federally regulated exchanges may trade.
This label describes the statement's response within the context above.
Sources
(7)
Official statement
Missouri Attorney General Hanaway Orders Unlicensed Prediction Markets To Cease And Desist Unlawful Sports Wagering
Relevant passage: Full release
About this source
The Missouri attorney general's announcement of cease-and-desist letters to Polymarket, Kalshi, Crypto.com, Novig, Underdog and Robinhood, with Hanaway's statement and links to each letter.
- Published
- Accessed
Reporting
Kalshi sues Missouri attorney general over cease-and-desist notice
Relevant passage: Full article
About this source
Sports Betting Dime report on Kalshi's lawsuit, quoting the complaint and a statement from a spokesperson for the Missouri Attorney General's Office.
- Author
- Robert Linnehan
- Published
- Accessed
Original text
Complaint, KalshiEX LLC v. Hanaway, No. 4:26-cv-1860 (E.D. Mo. filed Oct. 27, 2026), ECF 1
Relevant passage: ECF 1, introduction (paragraphs 1 to 5)
About this source
Kalshi's complaint against Hanaway, the Missouri Gaming Commission and its members, asking the court to bar them from enforcing Missouri's gambling laws against its sports event contracts, which it says the Commodity Exchange Act places under federal jurisdiction.
- Published
- Accessed
Original text
Complaint, North American Derivatives Exchange, Inc. d/b/a OG.com Prediction Markets v. Hanaway, No. 4:26-cv-00969 (W.D. Mo. filed Oct. 16, 2026), ECF 1
Relevant passage: ECF 1, introduction (paragraphs 1 to 4)
About this source
The complaint of the federally designated exchange behind Crypto.com's OG prediction market, filed in federal court in Kansas City. It seeks to stop Hanaway and the Missouri Gaming Commission from regulating or ending its listing of event contracts.
- Published
- Accessed
Original text
Complaint, Ludlow Exchange, LLC d/b/a Novig v. Hanaway, No. 4:26-cv-01780 (E.D. Mo. filed Oct. 16, 2026), ECF 1
Relevant passage: ECF 1, introduction (paragraphs 1 to 4)
About this source
Novig's complaint asking the federal court in St. Louis to bar Hanaway and two Missouri Gaming Commission officials from enforcing Missouri's gambling and sports-wagering laws against its event contracts, which it says fall under the exclusive jurisdiction of the Commodity Futures Trading Commission.
- Published
- Accessed
Reporting
Missouri AG targets Polymarket, Kalshi, others in prediction market crackdown
Relevant passage: Full article
About this source
KCTV report on the cease-and-desist letters, with Hanaway's statement and a response from a Polymarket spokesperson.
- Author
- Gabe Swartz
- Published
- Accessed
Original text
Cease-and-desist letter from Missouri Attorney General Catherine L. Hanaway to KalshiEX LLC (Sept. 16, 2026)
Relevant passage: Pages 1 to 3
About this source
Hanaway's three-page letter telling Kalshi it operates an unlicensed online sports wagering platform in Missouri and must either stop or obtain a Missouri Gaming Commission license, pay state taxes and fees, and stop serving people under 21.
- Published
- Accessed
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- Publisher
- The Dispute Index
- Title
- Missouri's attorney general tells six prediction markets their sports contracts are illegal betting; Kalshi, Novig and Crypto.com's exchange sue
- First published
- Last updated
- Permalink
- https://disputeindex.com/cases/missouri-hanaway-prediction-markets-cease-and-desist-kalshi-novig-suits
The Dispute Index. "Missouri's attorney general tells six prediction markets their sports contracts are illegal betting; Kalshi, Novig and Crypto.com's exchange sue". First published: 2026-11-03. Last updated: 2026-11-03. https://disputeindex.com/cases/missouri-hanaway-prediction-markets-cease-and-desist-kalshi-novig-suits