Novig's lawsuit says event contracts are swaps that only federally regulated exchanges may trade, not sports bets for Missouri to license
NovigLudlow Exchange, LLC, doing business as Novig, plaintiff, in its complaint filed by its lawyers
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.
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.
“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.”
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
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.
Archived copy (opens in a new tab)Before the quotation
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.
After the quotation
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.
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. Novig disputes the premise that its contracts are sports bets, describing them instead as swaps that only federally regulated exchanges may trade.
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- 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
Kalshi's lawsuit calls Missouri's action against its sports event contracts a clear violation of the Supremacy Clause
KalshiEX LLC
“This action challenges the State of Missouri's clear violation of the Supremacy Clause with respect to the regulation of event contracts.”Read statement
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- Novig's lawsuit says event contracts are swaps that only federally regulated exchanges may trade, not sports bets for Missouri to license
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The Dispute Index. "Novig's lawsuit says event contracts are swaps that only federally regulated exchanges may trade, not sports bets for Missouri to license". First published: 2026-11-03. Last updated: 2026-11-03. https://disputeindex.com/events/8048-in-its-complaint-against-hanaway-and-two-missouri