Crypto.com and Novig challenge Missouri sports contract order
Crypto.com’s exchange and Novig sued Missouri on Oct. 16, arguing federal derivatives law shields their sports contracts as four other named platforms face the same state deadline.
The Top Crypto Editors 2 min read
Can Missouri treat sports event contracts as unlicensed wagering? Crypto.com’s exchange and Novig sued state officials on Oct. 16, asking federal courts to block enforcement of Missouri’s sports wagering laws against their contracts. The Block’s report says the filings arrived as the attorney general’s 30-day cease-and-desist deadlines expired.
What are the exchanges asking the courts to decide?
North American Derivatives Exchange, the CFTC-registered exchange behind Crypto.com’s OG.com Prediction Markets, filed in Missouri’s Western District; Novig operator Ludlow Exchange filed in the Eastern District. Both seek injunctions against state enforcement. Their complaints argue that the Commodity Exchange Act gives the CFTC exclusive jurisdiction over their event contracts and preempts Missouri gambling law.
Those are the companies’ legal claims, not court rulings. The federal docket for North American Derivatives Exchange’s case records its complaint for declaratory and injunctive relief on Oct. 16. Crypto.com’s exchange also says the attorney general addressed her letter to the wrong company and that the state’s two direct mobile sports wagering licenses have already been awarded.
Why did Missouri order the platforms to stop?
Attorney General Catherine Hanaway sent letters on Sept. 16 and 17 to six operators: Kalshi, Polymarket, Crypto.com, Novig, Underdog and Robinhood. The letters gave the firms 30 days to stop offering sports event contracts to Missourians or obtain a Missouri Gaming Commission license and pay the state’s 10% wagering tax. Hanaway said companies could not repackage sports bets as event contracts to evade state law.
Which companies have filed in Missouri?
As of Oct. 18, Kalshi, Polymarket, Robinhood and Underdog had not sued in either of Missouri’s federal districts, according to The Block’s review of court records. Kalshi had reported “ongoing discussions” with the attorney general’s office earlier in October. Novig’s complaint points to a pending appeal in a Kalshi case from Iowa before the 8th Circuit, which covers Missouri; watch for that court’s decision and the first rulings on the Missouri injunction requests.
References
- Block’s report — theblock.co
- federal docket for North American Derivatives Exchange’s case — dockets.justia.com