The Attorney General of Missouri, Catherine Hanaway, has ordered six prediction market operators to cease offering sports event contracts in the state. The companies have been given a 30-day deadline to comply with Missouri’s sports wagering laws or cease their activities.
Cease-and-desist letters were issued to Polymarket, Kalshi, Crypto.com, Novig, Underdog and Robinhood. Hanaway’s office argues that the sports contracts offered by these companies constitute sports wagering, requiring licensing by the Missouri Gaming Commission.
In 2024, Missouri voters approved Amendment 2, legalizing and regulating sports betting under the jurisdiction of the Missouri Gaming Commission. The regulated market has been in operation since December 1, 2025. Sports wagering is allowed through licensed mobile and online platforms and at authorized physical locations, with a 10% tax on sports betting gross receipts.
Online operators are required to pay initial and five-year renewal licensing fees of up to $500,000, with revenues supporting educational institutions and the state’s Compulsive Gaming Prevention Fund.
The state’s regulations also prohibit individuals under 21 from engaging in sports wagering activities. Hanaway’s office has noted that Polymarket, Kalshi, Crypto.com, Underdog, and Robinhood either allow underage users to access their products or lack sufficient safeguards to prevent Missourians under 21 from participating. The cease-and-desist letter to Novig does not mention an age-related allegation.
The dispute revolves around whether sports event contracts are primarily subject to federal commodities regulations or state gambling laws. Hanaway cited federal court rulings stating that online sports wagering platforms offering such products remain subject to state gambling laws. Her office asserts that the Commodity Exchange Act does not override state law in this area and that sports event contracts do not qualify as swaps governed exclusively by federal law.
“Missourians voted for a secure, well-regulated sports wagering market that benefits public education and addresses problem gambling. Companies cannot repackage sports bets as ‘event contracts’ to evade Missouri law. We will enforce the regulations approved by voters and protect consumers,” Hanaway stated on Friday. “Any company wishing to offer sports wagering in Missouri must be licensed by the Missouri Gaming Commission, pay the required taxes and fees, and prevent individuals under 21 from placing bets.”
The letters specify that companies may continue to operate if they obtain the necessary Missouri license and fulfill applicable tax and fee obligations. For the five operators mentioned in relation to age restrictions, compliance with Missouri’s minimum wagering age is also required.
The Attorney General’s office has indicated that Missouri is open to potential legislative changes in the future, but at present, companies must adhere to existing state laws or stop offering sports wagering products to individuals in Missouri.
Robinhood has challenged the state’s characterization of its products, stating: “Robinhood’s event contracts are federally regulated by the Commodity Futures Trading Commission and offered through Robinhood Derivatives, LLC, a CFTC-registered entity, allowing retail customers to access prediction markets in a safe, compliant, and regulated manner.”
Polymarket similarly maintains that prediction markets are regulated by the Commodity Futures Trading Commission under a federal framework, not a patchwork of state rules.