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Crypto.com and Novig sue Missouri over sports prediction markets
Crypto.com and Novig have filed separate federal lawsuits against Missouri officials to block the enforcement of state sports betting laws against their prediction market event contracts. The legal challenge follows cease-and-desist notices issued in September by Missouri Attorney General Catherine Hanaway to six prediction market operators, including Kalshi, Polymarket, and Robinhood.
The plaintiffs argue that their sports event contracts are financial derivatives that fall under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC) rather than state gambling authorities. Novig specifically noted that the CFTC granted it a regulated exchange designation in June.
Missouri officials maintain that these products are essentially sports wagers that must comply with state regulations, which include a 10% tax on gross receipts and a minimum betting age of 21. The lawsuits seek to prevent the state from treating these federally regulated contracts as unlicensed gambling.
Entities
Catherine Hanaway · Commodity Futures Trading Commission · Crypto.com · Missouri · Novig
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] Both Crypto.com and Novig filed their respective federal complaints on October 16. crypto.news · unchainedcrypto.com
- [● 2 SOURCES] Missouri Attorney General Catherine Hanaway issued cease-and-desist letters to six prediction market operators, including Kalshi, Polymarket, and Robinhood, in September. crypto.news · unchainedcrypto.com
- [● 2 SOURCES] Missouri requires licensed sports bettors to be at least 21 years old and subject to a 10% tax on gross receipts. crypto.news · unchainedcrypto.com
- [● 3 SOURCES] Crypto.com and Novig filed separate federal lawsuits against Missouri officials to block the enforcement of state sports betting laws against their event contracts. www.criptotendencias.com · crypto.news · unchainedcrypto.com
- [○ 1 SOURCE] The CFTC granted Novig a designation as a federally regulated derivatives exchange in June. unchainedcrypto.com
- [● 3 SOURCES] The plaintiffs argue that their sports event contracts are financial derivatives falling under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC). www.criptotendencias.com · crypto.news · unchainedcrypto.com