Missouri AG orders six prediction markets to halt sports contracts

Missouri Attorney General Catherine Hanaway has issued cease-and-desist orders to six prediction market operators, including Polymarket, Kalshi, Crypto.com, Novig, Underdog, and Robinhood. The state alleges that these platforms are offering unlicensed sports wagering by using “event contracts” to bypass state gambling laws.

Missouri officials argue that these contracts function as sports bets and should be subject to the state's regulated framework, which was established following the passage of Amendment 2 in 2024. This framework imposes a 10% tax on sports betting gross receipts to fund public education. Regulators expressed concern that prediction markets could divert significant tax revenue away from state programs and may lack adequate age-verification methods.

The operators contend that their platforms are financial products regulated at the federal level by the Commodity Futures Trading Commission, rather than state-regulated sportsbooks. This legal distinction between a “contract” and a “bet” is at the center of a growing national conflict between state regulators and prediction market companies.