Crypto.com and Novig Sue Missouri to Block Sports Wagering Enforcement

Crypto.com and Novig filed separate federal lawsuits on October 16, 2026, challenging Missouri's sports wagering laws after the state attorney general ordered them to stop offering sports event contracts or obtain licenses. Crypto Briefing reported the filings. The platforms argue their contracts are federally regulated swaps, preempting state gambling rules, while Missouri considers them unlicensed sports betting.

The Cease-and-Desist Letters and the Two Suits

Missouri Attorney General Catherine Hanaway's office sent cease-and-desist letters between September 16 and 17, giving the companies a choice: stop serving Missouri residents or get licensed and pay the associated taxes and fees. Four other companies received the same letters. Kalshi, Polymarket, Robinhood and Underdog have not sued, according to court records. TradingView reported that the suits seek to bar enforcement of state sports wagering laws against their event contracts after a 30-day deadline expired. The Block reported that Crypto.com's exchange said the attorney general sent its letter to the wrong company and that Missouri has no sports wagering licenses left to issue.

Missouri levies a 10% tax on adjusted gross revenue from licensed sports betting, and application fees can reach $500,000. Crypto.com and Novig contend their sports event contracts are swaps, a type of financial derivative falling under the Commodity Futures Trading Commission. Novig filed in the Eastern District of Missouri; Crypto.com filed in the Western District. Voters approved Amendment 2 on November 5, 2024, legalizing sports wagering under the Missouri Gaming Commission, and the regulated market launched on December 1, 2025. Novig, operated by Ludlow Exchange LLC, launched its CFTC-regulated prediction market platform on August 4, 2026, focusing exclusively on sports. The attorney general's office also flagged age concerns for five of the six platforms, with Novig the only one left out of that complaint.

Crypto.com's Prediction Market Push

According to akta.pro company records, Crypto.com appointed Iskandar Vanblarcum, a former OKX executive, as Managing Director of its Exchange platform in June 2026 to expand institutional offerings including regulated prediction markets. The platform claims over 150 million registered users globally as of 2026 and has been operating since 2016. Crypto.com is a Singapore-headquartered, CFTC/SEC-regulated financial platform offering cryptocurrency trading, stock and ETF investing, prediction markets, derivatives, staking and crypto payments.

Earlier Prediction Market Moves

Crypto.com Exchange launched Predict Pro, a prediction market for US users covering real-world events, on October 15, 2026, according to ChainCatcher. The product supports real-time order books, multiple order types and 2-6 prediction combinations on sports, elections and crypto prices. CoinMarketCap reported the same day that Cronos rose 3.1% in an hour after the launch. On October 12, TechStartups reported that Quantofi partnered with Crypto.com to launch an AI-powered crypto trading analytics platform on October 10, covering 215 instruments.

What Comes Next in the Two Federal Courts

The next signals are early motions in the two federal courts and whether either judge grants relief that pauses Missouri's enforcement. Whether any of the four remaining platforms decides to file is also unresolved.