by
Missouri sports betting is still in its infancy. Sports betting apps didn’t hit the state until December of last year.
So far, Missouri has wildly underperformed many other legal sports betting states. Revenues have been shockingly low month to month. Heck, through the launch month til August 2026, the state has made a meager $11.7 million in tax money off legalized betting.
But… there is a caveat, and a big one at that. This is the first full NFL betting season the state has experienced, and revenues are expected to skyrocket from now til end of the year. Even more so now that the Kansas City Chiefs are winning games again.
Perhaps that’s why Missouri regulators are being extra defensive. In the last month, they sent six different cease and desist letters to prediction markets. But get this, they’ve now been sued right back. Keep reading and we’ll tell you all the juicy details of this back-and-forth fight!
Missouri Gives Prediction Markets An Ultimatum
Missouri Attorney General Catherine Hanaway sent cease-and-desist letters to six prediction markers in September — Kalshi, Polymarket, Crypto.com, Novig, Underdog and Robinhood. Each was told to stop offering sports event contracts in the state… or get licensed through the Missouri Gaming Commission (and pay the fees that come with it).
The letters went out on September 16 and 17 (a week into the NFL season, probably not a coincidence), giving the companies 30 days to comply. That put their deadlines right about now, six weeks into the NFL regular season.
“Companies cannot repackage sports bets as ‘event contracts’ to avoid Missouri law,” Missouri’s Attorney General Catherine Hanaway said in a statement.
Like just about every other state, Missouri is accusing prediction platforms of operating sportsbooks, though, under a new guise (financial products). This allows them to bypass state rules like licensing fees, a 10% tax on sports wagering revenue, and a minimum betting age of 21.
The state Missouri wants their fair share, and we can understand why. Like many other states, its betting taxes are supposed to support public education and problem gambling programs. Prediction markets are getting a pass on it just because it’s federally-regulated under the Commodity Futures Trading Commission (CFTC).
These cease-and-desist letters were the first shots of war — but far, far from the end of it. Two prediction markets have fired right back.
Novig And Crypto.com Fight Back
On October 16 — right around this 30-day deadline — both Novig and Crypto com sued Hanaway and Missouri Gaming Commission. Though, it was done in different districts. Novig filed in the Eastern District of Missouri, while Crypto com hit them in the Western District. The separate districts mean the cases won’t be assigned to the same judge. Both companies are asking federal courts to stop Missouri from enforcing its gambling laws against their sports contracts.
Interestingly enough, this is the first major battle fought by Novig. They barely launched on August 4, and became instant players thanks to a marketing campaign with Sydney Sweeney (who owns an ownership stake in the platform). The company reported more than $125 million in notional trading volume during its first week. That’s trading activity, not revenue, but it shows how quickly the product has already caught on.
Like every other prediction market that’s been sued (and that’s a lot of examples), Novig contends that federal law gives that agency exclusive authority over its contracts, preventing Missouri from imposing its own gambling regulations. Federal law trumps state law is the argument. That’s the same exact argument Crypto com is making in its own suit.
But Crypto com also raises a more unique objection: according to its complaint, Missouri’s two direct mobile sports wagering licenses have already been awarded. The state only created two of these licenses when it launched. Therefore, Crypto com says there is no license route for them to take even if they tried. Talk about a “gotcha.”
So far, only those two prediction markets sued the Show-Me State. There’s no word that the other four platforms did the same or agreed to stop operating in Missouri. We don’t know, but we’re monitoring the situation.
Missouri’s Fight Could Reach Beyond State Lines
The federal appeals courts have not been consistent with prediction markers. At all. The Third Circuit sided with Kalshi in New Jersey, while the Sixth and Ninth Circuits sided with states in similar disputes.
For Missouri, the court to watch is the Eighth Circuit. It’s already considering a Kalshi appeal involving Iowa, and its decision could shape how Missouri’s cases are handled. Novig specifically points to that pending appeal in asking for protection from Missouri’s enforcement efforts.
Even the NFL has stepped into the fight. On October 8, the NFL backed New Jersey’s request for Supreme Court review, questioning whether the CFTC has the resources to adequately police sports betting. The league wants safeguards comparable to those imposed by licensed sports betting apps.
Kalshi’s response to that petition is due November 9, though the Supreme Court hasn’t agreed to hear the case. It seems like every state, including Missouri, is waiting on them to take up the issue because it’s been two years of nonstop fighting, and we’re no closer to a resolution today than in 2025, when these platforms first gained big traction.
Online betting sites 