Novig & Crypto.com sue Missouri over sports contract order
Missouri’s cease-&-desist order targeted eight prediction market operators over sports event contracts, not just these two.
The hit
Novig & Crypto.com filed separate lawsuits against Missouri on Friday. Crypto.com filed in the Western District after Novig had already sued in the Eastern District, a move that keeps the two cases from landing before the same judge, according to gaming lawyer Daniel Wallach. Both companies are challenging a September cease-&-desist order from Missouri attorney general Catherine Hanaway’s office.
Why it matters
The dispute turns on whether federal commodities law shields prediction markets from state gambling rules. Novig argues its contracts fall under exclusive Commodity Futures Trading Commission jurisdiction, pre-empting Missouri’s licensing regime. Appeals courts are split: the Ninth & Sixth Circuits backed states, the Third backed operators.
The record
| Novig trading volume, first week (August launch) | $125m |
|---|---|
| Operators targeted by the order | 8, including Novig & Crypto.com (Missouri AG) |
| Licensing alternative tax rate | 10% (per Covers) |
What happens next
An appeal in either case would test the untested Eighth Circuit Court of Appeals.
Sources: Novig, Crypto.com Sue Missouri After Cease-and-Desist Order
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