Crypto.com and Novig sue Missouri to block sports prediction market crackdown

Crypto.com’s prediction market exchange and Novig have filed separate federal lawsuits against Missouri officials, seeking to stop the state from enforcing sports betting laws against their event contracts after a 30-day compliance deadline expired. Summary Crypto.com and Novig have filed separate federal lawsuits against Missouri after the state ordered six prediction market operators to comply with its sports betting laws. Both companies argue that their sports event contracts fall under the CFTC’s exclusive jurisdiction and cannot be regulated under state gambling laws. Missouri officials gave the operators 30 days to stop offering sports contracts without a license and comply with the state’s 21 year minimum betting age and 10% wagering tax. Federal appeals courts remain divided over whether state gambling laws apply to sports prediction markets, with a related Kalshi case pending before the Eighth Circuit. According to federal court records reviewed by crypto media, both companies filed their complaints on Oct. 16, challenging cease-and-desist notices issued by Missouri Attorney General Catherine Hanaway in September. The lawsuits followed warnings sent to six prediction marke...