Crypto.com and Novig sue Missouri over sports event contract crackdown
In brief
- Crypto.com and Novig filed separate federal lawsuits against Missouri on October 16, 2026.
- Cease-and-desist letters from Attorney General Catherine Hanaway's office prompted the suits.
- Both platforms argue their sports event contracts are CFTC-regulated swaps that preempt state gambling law.
- Missouri considers the contracts unlicensed sports betting under state law.
- Kalshi, Polymarket, Robinhood and Underdog received the same letters but have not sued.
What the AG's letters demanded
The letters arrived between September 16 and 17, Crypto Briefing reported. The choice they offered was blunt: stop serving Missouri residents or get licensed.
Getting licensed isn't cheap. Missouri levies a 10% tax on adjusted gross revenue from licensed sports betting, and application fees can reach $500,000.
The AG's office also flagged age concerns (centered on a participation age of 18) for five of the six platforms that got letters. Novig was the only one left out of that complaint, and the concerns remain allegations from the AG's office. Four other companies received the same letters, but Kalshi, Polymarket, Robinhood and Underdog haven't sued, according to court records cited by Crypto Briefing.
Swaps or sports bets?
It's a definitional fight at its core. Crypto.com and Novig argue their sports event contracts are swaps, a type of financial derivative, and that if those contracts are federally regulated derivatives under the CFTC, federal law preempts state gambling rules.
Missouri sees it differently.
The state considers the contracts unlicensed sports betting under its own law. Per the court records Crypto Briefing cited, Novig filed in the Eastern District of Missouri, while Crypto.com filed in the Western District. Novig, operated by Ludlow Exchange LLC, launched its CFTC-regulated, sports-focused prediction market platform on August 4, 2026.
A young regulated market
Missouri's own regulated market is new. Voters approved Amendment 2 on November 5, 2024, legalizing sports wagering and putting the Missouri Gaming Commission in charge of oversight, and the regulated market launched on December 1, 2025.
That's the licensing system both platforms are now fighting to stay outside of. Crypto Briefing noted one hurdle in its assessment: federal courts have previously rejected similar preemption claims in disputes over unlicensed sports betting.
Frequently asked questions
Why did Crypto.com and Novig sue Missouri?
Both companies filed federal lawsuits on October 16, 2026, after the Missouri Attorney General's office sent cease-and-desist letters treating their sports event contracts as unlicensed gambling. The letters, which arrived September 16 to 17, told them to stop serving Missouri residents or get licensed, according to Crypto Briefing.
What is the legal argument behind the lawsuits?
Crypto.com and Novig argue their sports event contracts are swaps, a type of financial derivative. If the contracts are federally regulated derivatives under the CFTC, they say, federal law preempts state gambling rules. Missouri considers the contracts unlicensed sports betting under state law.
What does a Missouri sports betting license cost?
Missouri levies a 10% tax on adjusted gross revenue from licensed sports betting, and application fees can reach $500,000, according to Crypto Briefing. The state's regulated market launched on December 1, 2025, after voters approved Amendment 2 in November 2024.
