Crypto.com and Novig Sue Missouri Over Event Contracts
Two platforms challenge Missouri's cease-and-desist orders while Kalshi, Polymarket, and Robinhood hold off.
Crypto.com and prediction market operator Novig filed lawsuits against Missouri this week, challenging the state's authority to block sports-event contracts — while rivals Kalshi, Polymarket, Robinhood, and Underdog, all of whom received cease-and-desist orders, have not filed suit, according to court records cited by The Block.
Why It Matters
The split response to Missouri's enforcement action reveals a strategic fault line in the prediction-market industry: some platforms are willing to litigate aggressively, while others are choosing restraint — likely to preserve regulatory goodwill or ongoing licence negotiations. A court ruling in favour of Crypto.com and Novig could set a precedent that limits states' power to apply securities or gaming law to event-contract products. Conversely, a loss would hand state regulators a replicable template for shutting down prediction markets without federal preemption. For bettors and investors, the outcome directly affects which platforms remain accessible across the US. Gambling on any of these platforms involves real financial risk, and regulatory uncertainty amplifies that risk.
Context
Missouri issued cease-and-desist orders to multiple prediction-market and crypto platforms over sports-event contracts, products that sit in a contested grey zone between derivatives trading and sports betting. As of October 2026, the CFTC has asserted federal jurisdiction over certain event contracts, creating direct tension with state-level regulators who argue these products constitute unlicensed gambling. Kalshi previously fought — and won — a federal court battle against the CFTC itself over political event contracts, demonstrating the sector's willingness to litigate when the stakes are high enough.
What's Next
Watch for preliminary injunction hearings in the Crypto.com and Novig cases, which could temporarily suspend Missouri's cease-and-desist orders while litigation proceeds. The decisions by Kalshi, Polymarket, Robinhood, and Underdog to hold off on filing suggest possible behind-the-scenes settlement talks with Missouri regulators.
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