Missouri Attorney General Hanaway Orders Unlicensed Prediction Markets To Cease And Desist Unlawful Sports Wagering

JEFFERSON CITY, Mo. -Attorney General Catherine Hanaway announced that her office has issued cease-and-desist letters to multiple prediction market operators offering sports "event contracts" to Missourians. Facilitating such "event contracts" constitutes unlicensed sports wagering under Missouri law. The Attorney General's Office sent cease-and-desist letters to six companies: Polymarket, Kalshi, Crypto.com, Novig, Underdog, and Robinhood.

"Missourians voted for a safe, well-regulated sports wagering market that supports public education and addresses problem gambling. Companies cannot repackage sports bets as 'event contracts' to avoid Missouri law. We will enforce the rules voters approved and protect consumers," said General Hanaway. "Any company that wants to offer sports wagering in Missouri must be licensed by the Missouri Gaming Commission, pay the required taxes and fees, and ensure no one under 21 can place a bet."

Federal courts have ruled that online sports wagering platforms, like those offered by these prediction market operators, are subject to state gambling laws. Federal law does not preempt state law in this area, and sports "event contracts" do not qualify as "swaps" governed by the federal Commodity Exchange Act, as frequently claimed by illegal online sportsbooks.

In 2024, Missourians approved Amendment 2 to legalize and regulate sports betting, placing oversight with the Missouri Gaming Commission, and launching the market on December 1, 2025. The constitutional framework reflects the voters' decision that sports wagering be conducted through a well-regulated system that supports public education funding and consumer protection. Wagering is permitted both through licensed mobile and online platforms and in person at authorized locations, with a 10% tax on sports betting gross receipts.

Missouri's voter-approved framework requires robust age verification to ensure no one under 21 can place a sports wager, yet Polymarket, Kalshi, Crypto.com, Underdog, and Robinhood either permit underage users to access their products or lack adequate safeguards to prevent Missourians under 21 from participating in sports wagering.

General Hanaway calls on Polymarket, Kalshi, Crypto.com, Novig, Underdog, and Robinhood to comply with Missouri law without delay and to cease and desist from offering sports event contracts to Missourians unless and until they are licensed by the Missouri Gaming Commission. Failure to comply will result in enforcement action by the State of Missouri.

Read the letter to Polymarket here.
Read the letter to Kalshi here.
Read the letter to Crypto.com here.
Read the letter to Novig here.
Read the letter to Underdog here.
Read the letter to Robinhood here.