Crypto.com and Novig Sue Missouri to Block Sports Contract Rules

Crypto.com’s prediction-market platform and Novig sued Missouri officials in federal court Friday, Oct. 16, asking a judge to bar the state from enforcing sports-wagering rules against their event contracts. The case challenges whether states can regulate products the companies say fall under federal commodities law.

Missouri Attorney General Catherine Hanaway sent cease-and-desist letters in September to six platforms, including the two companies. The notices gave recipients 30 days to stop offering sports event contracts to Missouri residents or obtain a state license and pay a 10% tax.

The Crypto.com platform argues its notice was addressed to Foris DAX Inc., rather than the trading platform. It also says Missouri’s constitution allows only two mobile sports-betting licenses, both already issued, leaving no license available.

Both companies contend that the Commodity Exchange Act gives the Commodity Futures Trading Commission exclusive authority over the contracts and overrides state rules. Novig asked the court for a preliminary injunction to pause enforcement while the lawsuit proceeds.

The case comes amid a split among federal appeals courts over whether federal law overrides state oversight.