Crypto.com, Novig Push Back Against Missouri Prediction Market Threats

Prediction Markets Industry News Archives |
Written By Jon Young | Published at October 21, 2026
Missouri state flag prediction markets legal action
Crypto.com and Novig are suing Missouri after the latest threat to prediction markets.

Missouri has become this month’s prediction market battleground after two exchanges requested federal protection following the state attorney general’s crackdown.

Novig and Crypto.com are requesting that federal judges put a stop to Missouri’s attempts to treat predictions like unlicensed sportsbooks.

Missouri had already issued cease-and-desist letters last month to a group of prediction platforms. Two of those, Novig and Crypto.com, have now filed complaints against AG Catherine Hanaway.

Novig Defends ‘Sports-Based Event Contracts’

Missouri had issued cease-and-desist letters to half a dozen prediction market platforms last month. Those included Crypto.com, Novig and Underdog.

The AG argued that federal courts have ruled that sports event contracts do not qualify as “swaps” as per the terms of the Commodity Exchange Act. However, not all appeal courts agree, and a final Supreme Court decision has not been made.

The original cease-and-desist letters requested that the prediction exchanges named must stop offering sports contracts entirely or apply for the appropriate sports betting license. Missouri legalized online sports betting two years ago.

Novig and Crypto.com are not fighting back, filing complaints in two separate courts.

Novig argues that event contracts are “derivative instruments” protected under Designated Contract Markets (DCM) rules. It’s an argument that has been playing out in federal courts all year. Now it’s Missouri’s turn.

Missouri vs. Prediction Markets

Markets Taking the Fight On

Novig is a relative newcomer to the prediction markets game, while Crypto.com launched its product in 2024.

Novig only launched its prediction market in the summer, but it already has fights on its hands.

The exchange is particularly vulnerable to legal threats such as this because of its sports-first policy, as seen in its headline-grabbing advertising campaign with Sydney Sweeney. Novig doesn’t accept trades on wars, politics or the economy.

Crypto.com, meanwhile, launched in 2024. However, it doubled down on its sports contract focus in February with the launch of “OG”, offering margin trading for sports fans.

Interestingly, the two prediction markets are taking their legal actions in separate courts to avoid tackling the same judge. Crypto.com has filed its case in the Western District of Missouri as opposed to the Eastern District where Novig is suing.

Different Strokes for Different Folks

Prediction markets are taking a different attitude to legal threats from state to state. While Novig and Crypto.com take a legal route, sites like Coinbase are playing ball.

Earlier this month, Coinbase agreed to halt sports event contracts in Michigan following a deal with the state’s gaming commission. Robinhood and Kalshi also moved away from sports contracts in what is one of the biggest online gambling states in the U.S.

Comparatively, Missouri has a younger and much smaller online sports betting industry than Michigan. It’s also on the slide. Monthly handle dropped 4.5% in July this year compared to June. It marked the lowest month for sports wagering since Missouri went legal in 2025.

Meanwhile, Michigan operators reported $337.6 million in combined online gambling gross receipts in August. However, the relative sizes of the two economies may not be a factor in the prediction markets’ decision to take legal action.

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