Crypto.com and Novig sue Missouri over order to stop sports event contracts
The two prediction-market operators argue federal commodities law overrides Missouri's gambling laws. Four other companies sent the same cease-and-desist letters had not sued as of Sunday, The Block reported.
Crypto.com’s prediction-market exchange and Novig filed lawsuits against Missouri officials in federal court on Friday, 16 October (US time), asking judges to bar the state from enforcing its sports wagering laws against their sports event contracts, The Block and Covers reported.
Missouri Attorney General Catherine Hanaway sent cease-and-desist letters in September to six companies: Polymarket, Kalshi, Novig, Crypto.com, Underdog and Robinhood. The letters gave each 30 days to stop offering sports event contracts to Missourians or obtain a licence from the Missouri Gaming Commission. “Companies cannot repackage sports bets as ‘event contracts’ to evade Missouri law,” Hanaway wrote in a post on X on 18 September (US time).
North American Derivatives Exchange, the exchange registered with the Commodity Futures Trading Commission (CFTC) that runs Crypto.com’s prediction markets, filed in the Western District of Missouri. Its complaint argues that the Commodity Exchange Act gives the CFTC “exclusive jurisdiction” over its contracts and overrides state gambling law, according to The Block. The complaint also says the letter was addressed to the wrong company and that no licence is available, because Missouri’s constitution allows only two direct mobile sports wagering licences and both have been awarded.
Novig filed in the Eastern District through its exchange operator, Ludlow Exchange. It is seeking a preliminary injunction while the 8th Circuit Court of Appeals hears an appeal on the same legal question in a Kalshi case from Iowa, The Block reported.
Kalshi, Polymarket, Robinhood and Underdog had not sued in either Missouri federal district as of Sunday, according to The Block’s review of court records. Federal appeals courts have split on the issue: the 6th and 9th Circuits ruled against Kalshi, and the 3rd Circuit ruled in its favour.
Sources
Related coverage
All crypto →
US judge orders Trump to sit for a deposition in his $10 billion lawsuit against the BBC by 11 December
A federal magistrate judge in Florida ordered President Donald Trump to give a deposition in his defamation case against the BBC by 11 December or face the possibility of the case being dismissed, and ruled that it can be videotaped.
Chinese prosecutors seek to confiscate more than 61,800 bitcoin linked to Tianjin fraud case
A court in Tianjin has accepted prosecutors' request to confiscate the bitcoin and other assets linked to Qian Zhimin, which were seized in Britain, days after a UK High Court ruling on victims' claims.
US Supreme Court leaves in place order blocking Trump administration's policy on care for transgender federal inmates
The Supreme Court declined to pause a federal judge's order that bars the Bureau of Prisons from enforcing a policy ending hormone therapy and other accommodations for transgender inmates. Justices Thomas and Alito would have granted the administration's request.
US appeals court hears Arkansas challenge to order blocking its crypto mining law
The Eighth Circuit heard Arkansas's appeal against a preliminary injunction on its 2024 crypto mining law on 20 October but did not rule; the injunction stays in place.
California regulator and six blockchain groups file objections to SEC crypto offering proposal; SEC keeps taking comments
California's financial regulator said the SEC's 'Regulation Crypto Assets' plan would override state investor protections, while Chainlink Labs, the Cardano Foundation and four others asked for digital commodities to be written into the rule.
Man charged over attack on Australian MP Helen Haines appears in court; police do not rule out further charges
Brendan Nugent, 43, appeared in Wangaratta Magistrates' Court and was remanded in custody until 4 February. Victoria Police said further serious charges were being considered, and the Australian Federal Police said it charges almost one person a week for targeting federal officials.
