Crypto.com's prediction market exchange and Novig filed federal lawsuits against Missouri officials, challenging enforcement actions over their sports event contracts, according to The Block.
The suits follow cease-and-desist letters Missouri Attorney General Catherine Hanaway sent to six prediction market firms on Sept. 16 and 17, giving each 30 days to stop offering sports event contracts or obtain state licensing, The Block reported. Hanaway's letter said Crypto.com allows traders as young as 18, even though Missouri sets the minimum sports-betting age at 21. The outlet noted the state's constitution permits only two direct mobile sports wagering licenses, and both have already been awarded.
Kalshi, Polymarket, Robinhood and Underdog, the other four companies that received letters, had not filed suit in Missouri's federal districts as of Sunday, based on court records reviewed by The Block. None of the four immediately responded to the outlet's requests for comment. Underdog separately sued Connecticut last month over a similar regulatory crackdown but has not taken Missouri to court.
The Block also pointed to a split among federal appeals courts over related sports-contract disputes involving Kalshi, with rulings going against the company in some circuits and in its favor in another; the circuit covering Missouri has not yet ruled on the matter. Kalshi was described as the first of the six firms to respond to Hanaway's letters, though the status of its discussions with her office was not disclosed.
Sources & evidence
News, not financial advice. Memecoins carry substantial risk. Market snapshots can change quickly. This story was produced by the Block FOMO desk with AI assistance and checked against its sources. Editorial policy.