Missouri Attorney General Catherine Hanaway announced cease-and-desist letters to Polymarket, Kalshi, Crypto.com, Novig, Underdog, and Robinhood, ordering them to stop offering sports-linked event contracts to state residents within 30 days or face enforcement actions.
Hanaway's office claims these platforms operate unlicensed sports wagering businesses. The state contends that the companies have attempted to circumvent Missouri sports gambling laws by characterizing sports bets as "event contracts" or "swaps" governed by the Commodity Exchange Act and subject to exclusive Commodity Futures Trading Commission (CFTC) regulation.
Missouri disputes this classification, citing federal court rulings that determined these bets do not qualify as swaps exempt from state oversight. The state also argues the platforms have avoided paying licensing fees and a 10% wagering tax on adjusted gross revenue from in-state sports wagering.
"Missourians voted for a safe, well-regulated sports wagering market that supports public education and addresses problem gambling. Companies cannot repackage sports bets as 'event contracts' to avoid Missouri law," Hanaway said.
Missouri's action reflects an ongoing dispute between states and prediction market platforms over regulatory authority. In September, New Jersey petitioned the U.S. Supreme Court to determine whether federal law preempts states from regulating sports bets offered on CFTC-registered markets. The CFTC has maintained exclusive oversight of these contracts, with Chairman Michael S. Selig stating in April that the commission would defend its authority in court against state challenges.
