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      Crypto.com and Novig sue Missouri, challenging its ban on sports event contracts

      PANews reported on October 19, citing The Block, that North American Derivatives Exchange, the CFTC-registered exchange behind Crypto.com's prediction market, and Novig (through its exchange operator Ludlow Exchange) filed lawsuits on October 16 in the U.S. District Courts for the Western and Eastern Districts of Missouri, respectively, against state officials led by Attorney General Catherine Hanaway, seeking to bar the state from enforcing its sports betting law against their sports event contracts. The plaintiffs argue that the Commodity Exchange Act grants the CFTC exclusive jurisdiction that preempts state gambling law, and that Missouri's constitution allows only two mobile sports betting licenses, both of which have already been issued and cannot be applied for. Hanaway had issued cease-and-desist orders to six companies in mid-September, requiring them to stop offering sports event contracts to users in the state within 30 days or obtain a license and pay a 10% gambling tax; that deadline has now passed. Kalshi, Polymarket, Robinhood and Underdog, which also received cease-and-desist orders, have not yet filed lawsuits in Missouri.


      Source: PANews
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