Missouri Attorney General Catherine Hanaway filed counterclaims against sports‑centric prediction market platform Novig in the U.S. District Court for the Eastern District of Missouri on November 9. The filing relies on the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA), which permits a state attorney general to seek an injunction against “restricted transactions” involving unlicensed operators.
Hanaway’s complaint asserts that wagers placed with Novig are unlawful under Missouri law and therefore constitute “unlawful Internet gambling” under UIGEA. The counterclaim seeks to bar Novig from accepting any financial instruments from Missouri residents in connection with such gambling. In addition, the attorney general alleges violations of the Missouri Merchandising Practices Act, requesting restitution and civil penalties of up to $1,000 per violation, and characterizes Novig’s activities as a public nuisance that deprives the state of tax revenue.
Novig, which has been designated as a contract market by the Commodity Futures Trading Commission (CFTC) since June, filed its own lawsuit against Hanaway on October 16 and moved for a preliminary injunction on November 8. Novig argues that the Commodity Exchange Act grants the CFTC exclusive jurisdiction over event contracts traded on federally designated exchanges, precluding Missouri from enforcing its gambling statutes against the platform.
Polymarket U.S. Sues Missouri
On the same day, QCX LLC, doing business as Polymarket U.S., filed a complaint against Hanaway and five members of the Missouri Gaming Commission. The suit claims that Missouri’s sports‑wagering licensing regime is preempted by the Commodity Exchange Act and discriminates against out‑of‑state businesses. According to the complaint, Missouri permits new sports‑wagering licenses only to in‑state casino operators, requires wager‑processing servers to be located within the state, and limits bets to individuals physically present in Missouri.
Polymarket contends that this framework is designed to protect in‑state casinos and that the CFTC’s recent interpretation affirms that exchanges may not restrict access based on a trader’s geographic location within the United States.
State Enforcement Actions
In September, Hanaway sent cease‑and‑desist letters to six prediction‑market operators—including Polymarket, Kalshi, Novig, Crypto.com, Underdog and Robinhood—labeling their activities as unlicensed sports wagering. The letter to Polymarket specifically warned that the platform’s rulebook allowed 18‑year‑olds to trade, which the state said would not be tolerated.
Missouri’s actions are part of a broader national trend, with other states such as Arkansas and Utah also pursuing legal challenges against prediction‑market platforms.
