Kalshi's lawsuit calls Missouri's action against its sports event contracts a clear violation of the Supremacy Clause
KalshiEX LLCKalshiEX LLC, plaintiff, in its complaint filed by its lawyers
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.
Responding 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.
“This action challenges the State of Missouri's clear violation of the Supremacy Clause with respect to the regulation of event contracts.”
Original text
Where this statement fits
Missouri's attorney general tells six prediction markets their sports contracts are illegal betting; Kalshi, Novig and Crypto.com's exchange sue
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.
Source and context
Original text
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.
Before the quotation
The complaint names Hanaway, the Missouri Gaming Commission and the commission's executive director, chairman and commissioners as defendants, each in their official capacities.
After the quotation
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.
How this statement is classified
The label describes this statement's response within the context above.
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.
- Recorded on
- Published here
- People and groups discussed
- Catherine Hanaway
More from this case
Read the full caseHanaway's office says a bet on the Chiefs is sports betting whether placed on a prediction market or at a casino, and that she will enforce the law
“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”Read statement
Novig's lawsuit says event contracts are swaps that only federally regulated exchanges may trade, not sports bets for Missouri to license
Novig
“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.”Read statement
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- Kalshi's lawsuit calls Missouri's action against its sports event contracts a clear violation of the Supremacy Clause
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The Dispute Index. "Kalshi's lawsuit calls Missouri's action against its sports event contracts a clear violation of the Supremacy Clause". First published: 2026-11-03. Last updated: 2026-11-03. https://disputeindex.com/events/8047-kalshi-s-complaint-opens-by-saying-missouri-s