Two prediction market platforms, Crypyo.com and Novig, are now taking Missouri state to the court. These platforms are seeking to prevent the state from applying its sports betting laws to contracts related to sporting events entered into through them.
Last Friday, lawsuits were filed after the 30-day period was over for six prediction markets operators who had been instructed by the Attorney General of Missouri Catherine Hanaway to halt the activities of offering sports event contracts unless they receive state approval.
The operator of Crypto.com, North American Derivatives Exchange, has filed a lawsuit in the Western District of Missouri in order to claim that the Commodity Exchange Act provides exclusive jurisdiction for the Commodity Futures Trading Commission (CFTC) for the contracts that its business works with.
The operator of Novig, Ludlow Exchange LLC, has also worked on filing its own case in the Eastern district of Missouri where it is looking for preliminary as well as permanent injunctions in regard to its activities while the Eighth Circuit Court of Appeals deals with a similar dispute of prediction market named Kalshi in Iowa.
Both Novig and Crypto.com received letters that included tooththeys asking for cessation of business activities in September along with Kaishi, Polymarket, Underdog and Robinhood.
At the moment, the remaining five companies have not been active and filed lawsuits in either of the two federal court districts, even though it is known that Kalshi is discussing matters with the Attorney General.
The Attorney also metnioned that Crypto.com allows users under age of 21 trade contracts, which is illegal, as the legal age starts from 21.
The letter set a deadline with 30 days for prediction market platforms to stop operating and offering sports events contracts in the state or to apply for a license with the Missouri Gaming Commission.