Crypto.com and Novig challenge Missouri sports betting crackdown

The legal challenges, filed on Oct. 16, respond to cease-and-desist notices issued by Attorney General Catherine Hanaway in September. Missouri officials had given six prediction market operators 30 days to obtain state gambling licenses, adhere to a 21-year age limit, and pay a 10% wagering tax. While other firms targeted by the state, including Kalshi and Polymarket, have not yet initiated similar federal litigation in Missouri, Crypto.com and Novig are pushing for permanent injunctions to block state enforcement.

Crypto.com’s platform, operated by the North American Derivatives Exchange, argues that the Commodity Exchange Act grants the CFTC sole authority over its contracts. The exchange also noted that Missouri’s licensing requirements are functionally impossible to meet, as the state has already awarded its two available mobile sports wagering permits. Meanwhile, Novig, through its Ludlow Exchange entity, is seeking to preserve the current status quo while awaiting federal appellate guidance on the intersection of state gambling laws and commodities regulation. The Eighth Circuit is currently reviewing a related case, leaving the industry in a precarious position as federal courts remain split on the validity of state-level restrictions.