Missouri Attorney General Catherine Hanaway has ordered six prediction market operators to stop offering sports event contracts in the state. Hanaway has ordered the companies to comply with Missouri’s sports wagering laws, giving them 30 days to confirm compliance or cease the activity.
The cease-and-desist letters were issued to Polymarket, Kalshi, Crypto.com, Novig, Underdog and Robinhood. Hanaway’s office maintains that the sports contracts offered by the companies amount to sports wagering and therefore require licensing by the Missouri Gaming Commission.
Missouri voters approved Amendment 2 in 2024, legalizing and regulating sports betting under the oversight of the Missouri Gaming Commission. The regulated market began operating on December 1, 2025. Sports wagering is permitted through licensed mobile and online platforms and at authorized physical locations, with a 10% tax on sports betting gross receipts.
Online operators are subject to initial and five-year renewal licensing fees of up to $500,000, with applicable revenue supporting educational institutions and the state’s Compulsive Gaming Prevention Fund.
The state’s rules also prohibit anyone under 21 from placing sports wagers. Hanaway’s office said Polymarket, Kalshi, Crypto.com, Underdog and Robinhood either allow younger users to access their products or lack adequate safeguards to prevent Missourians under 21 from participating. The cease-and-desist letter to Novig does not make the same age-related allegation.
The dispute also centers on whether sports event contracts fall primarily under federal commodities regulation or state gambling law. Hanaway cited federal court decisions holding that online sports wagering platforms offering such products remain subject to state gambling laws. Her office argues that the Commodity Exchange Act does not preempt state law in this area and that sports event contracts do not qualify as swaps governed exclusively by federal law.
“Missourians voted for a safe, well-regulated sports wagering market that supports public education and addresses problem gambling. Companies cannot repackage sports bets as ‘event contracts’ to avoid Missouri law. We will enforce the rules voters approved and protect consumers,” Hanaway said Friday. “Any company that wants to offer sports wagering in Missouri must be licensed by the Missouri Gaming Commission, pay the required taxes and fees, and ensure no one under 21 can place a bet.”
The letters say the companies may continue operating only if they obtain the required Missouri license and meet applicable tax and fee obligations. For the five operators cited over age restrictions, the state also requires compliance with Missouri’s minimum wagering age.
The attorney general’s office said Missouri remains open to possible future legislative changes, but the companies currently must comply with existing state law or stop offering sports wagering products to people in Missouri.
“Failure to comply will result in enforcement action by the State of Missouri,” Hanaway said Friday.
Robinhood disputed the state’s characterization of its products, saying: “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 maintained that state gambling rules do not govern its markets: “Polymarket US maintains that prediction markets are regulated by the Commodity Futures Trading Commission under a federal framework, not a patchwork of state rules.”