Crypto.com and Novig sue Missouri to block sports wagering laws

Crypto.com and Novig have taken Missouri to federal court. Both are fighting the state’s attempt to treat their sports event contracts as unlicensed gambling. The two platforms filed separate lawsuits on October 16, 2026. They are responding to cease-and-desist letters from Missouri Attorney General Catherine Hanaway’s office. Those letters arrived between September 16 and 17 and gave the companies a blunt choice: stop serving Missouri residents, or get licensed and pay up. Four other companies received the same letters. Kalshi, Polymarket, Robinhood and Underdog have not sued, according to court records. For now, Crypto.com and Novig are the only ones willing to argue their case before a judge. What Missouri wants, and what the platforms say back The demand was simple. Either stop offering sports event contracts to people in Missouri, or obtain the required state licenses and pay the taxes and fees that come with them. Those costs are real. Missouri levies a 10% tax on adjusted gross revenue from licensed sports betting. Application fees can reach $500,000. Crypto.com and Novig contend that their sports event contracts are swaps, a type of financial derivative. Swaps fall under th...