Crypto.com and Novig are suing Missouri, four companies have not yet followed up

According to The Block, the prediction market exchange under Crypto.com filed a lawsuit against Missouri officials in federal court on October 16, along with Novig, seeking to prohibit the state from enforcing sports betting laws on its sports event contracts. Previously, Missouri Attorney General Catherine Hanaway issued cease-and-desist orders to six companies from September 16 to 17, requiring them to stop offering sports event contracts to local users within 30 days or obtain a license from the Missouri Gaming Commission and pay a 10% betting tax.

The exchange of Crypto.com, North American Derivatives Exchange, sued in the Western District Federal Court of Missouri, claiming that the Commodity Exchange Act grants the CFTC exclusive jurisdiction and takes precedence over state gambling laws. The lawsuit also stated that the Attorney General's letter was mistakenly sent to Foris DAX, Inc., and that the state constitution only allows for the issuance of two mobile sports betting licenses, with no licenses currently available.

Novig, through its exchange operator Ludlow Exchange LLC, filed a lawsuit in the Eastern District Court, requesting a preliminary and permanent injunction to maintain the status quo while the Eighth Circuit Court of Appeals hears the related case in Iowa regarding Kalshi. Among the six companies that received cease-and-desist orders, four, including Kalshi and Polymarket, have not yet followed up with lawsuits.