Missouri orders six prediction markets to stop offering sports contracts
State Attorney Hanaway has warned prediction market operators that they must comply with Missouri’s sports wagering laws.
U.S.- Missouri Attorney General Catherine Hanaway has ordered six prediction market operators to stop offering sports event contracts to customers in the state unless they obtain licences from the Missouri Gaming Commission. The cease-and-desist letters target Crypto.com, Kalshi, Nova, Polymarket, Robinhood and Underdog.
Hanaway said the contracts constitute unlicensed sports wagering under Missouri law. The state’s position is based on the sports betting framework approved by voters in 2024 and launched online in December 2025.
“Missourians voted for a safe, well-regulated sports wagering market that supports public education and addresses problem gambling,” Hanaway said. “Companies cannot repackage sports bets as ‘event contracts’ to avoid Missouri law.”
Licensed sportsbooks in Missouri must follow Gaming Commission rules, pay a 10 per cent tax on adjusted gross revenue and restrict wagering to customers aged 21 and over. Hanaway’s office argues that prediction markets offering sports contracts should face the same licensing, taxation, age-verification, and responsible gambling requirements.
The attorney general has also pointed to recent federal appeals court decisions finding that sports event contracts do not qualify as swaps under the Commodity Exchange Act (CEA). The cease-and-desist orders warn that Missouri may take legal action if the operators do not comply. The attorney said she hopes the companies will instead agree to operate under state gaming regulations and taxation but acknowledged that litigation is possible.
