Missouri Countersues Novig as Polymarket US Challenges State Rules

Missouri opened a new legal front over prediction market regulation on Nov. 9, filing a federal counterclaim against Novig as Polymarket U.S.’s operator separately challenged the state’s sports betting rules.

Missouri Attorney General Catherine Hanaway brought the counterclaim under the 2006 Unlawful Internet Gambling Enforcement Act. The state is asking the court to bar Novig from accepting funds from Missouri residents tied to illegal internet gambling. Missouri argues that bets made without state Gaming Commission approval violate state law.

That same day, QCX LLC, the operator of Polymarket U.S., sued Hanaway and five commission members. QCX argued that the Commodity Exchange Act prevents Missouri sports betting rules from applying to its exchange and alleged that the state’s licensing system discriminates against out-of-state companies. The company said licenses are limited to in-state casino boats and sports teams, and that the rules require betting servers to be located in Missouri.

Hanaway sent cease-and-desist letters to Polymarket, Kalshi, Novig, Crypto.com, Underdog and Robinhood in September, arguing that their sports contracts amounted to unlicensed sports betting. Novig sued Missouri officials in October, asserting that the Commodity Futures Trading Commission has exclusive jurisdiction over event contracts on federally designated exchanges.