Two prediction-market operators are suing Missouri authorities, asking federal courts to free their sports contracts from state requirements. North American Derivatives Exchange, which runs the Crypto.com OG platform, and Ludlow Exchange, which operates Novig, filed on 16 October after a 30-day compliance deadline expired. Both lean on Commodity Futures Trading Commission jurisdiction and the Commodity Exchange Act. The state wants a licence, a minimum age of 21 and a 10% tax on gross betting revenue.
The trigger was cease-and-desist orders dated 16 and 17 September. Attorney General Catherine Hanaway's office announced them on 18 September and gave six operators 30 days to leave the state or get licensed. The department's position is straightforward: calling something an event contract does not put a sports wager outside Missouri law. It also said five of the six companies allowed access to users under 21 or lacked adequate filters. Novig is not covered by that claim. Why the dispute matters for the market comes down to licensing.
Two filings, two arguments
North American Derivatives Exchange went to the Western District of Missouri. It asks the court to recognise federal jurisdiction and permanently bar the state from applying gambling rules to it. Its complaint says the order went to the wrong entity: the letter reached Foris DAX, Inc., not the exchange. A separate argument concerns licences. The state constitution allows only two direct mobile licences, and both are already issued. Ludlow Exchange filed in the Eastern District of Missouri, case 4:26-cv-01780, naming Catherine Hanaway, Michael Lear and Ian Zimmerman as defendants. It seeks a preliminary and permanent injunction and proposes holding measures until the Eighth Circuit rules in the Kalshi case in Iowa.
There is no single rule yet. The Sixth and Ninth Circuits sided with states against Kalshi; the Third Circuit backed the company. A federal court in Wisconsin earlier denied the CFTC a preliminary injunction against the state but left the federal preemption question open. The Crypto.com OG platform launched in February 2026, and Ludlow Exchange received CFTC contract-market status on 16 June. Novig is also contesting authorities in five other states. Kalshi, Polymarket, Robinhood and Underdog have not filed in Missouri. The state's talks with Kalshi were ongoing on 2 October.
