Crypto.com And Novig Take Missouri Prediction-Market Fight To Federal Court

Missouri’s crackdown on sports prediction contracts is now facing two federal court challenges, with operators linked to Crypto .com and Novig pushing back against state efforts to treat the products as unlicensed gambling. TL;DR: Two companies filed lawsuits on October 16 after receiving Missouri cease-and-desist letters. Their central argument is that federally regulated event contracts fall under CFTC oversight, but the courts have not resolved that question. Missouri Attorney General Catherine Hanaway gave six platforms notice in September that they should stop offering the relevant contracts to state residents or comply with sports-wagering rules. The state argues that a contract paying out based on a sporting result is a bet in substance, whatever name a platform gives it.

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