Missouri Attorney General Orders Polymarket, Kalshi and Four Others to Stop Unlicensed Sports Event Contracts

Missouri Attorney General Catherine Hanaway has ordered six prediction market operators to halt sports event contracts in the state. The cease-and-desist letters target Polymarket, Kalshi, Crypto.com, Novig, Underdog and Robinhood. Each has 30 days to confirm compliance with Missouri sports wagering laws or cease the activity.

Hanaway’s office states that the contracts amount to sports wagering requiring a license from the Missouri Gaming Commission. Voters approved Amendment 2 in 2024. The regulated market opened on December 1, 2025, featuring a 10% tax on gross receipts, licensing fees of up to $500,000 for initial and five-year renewals, and a minimum age of 21.

State Licensing and Consumer Safeguards

The letters cite inadequate age controls at five operators. Polymarket, Kalshi, Crypto.com, Underdog and Robinhood either allow users under 21 or lack safeguards to block Missouri residents in that group. Novig faces no such age allegation in its letter.

Hanaway made clear that the companies may operate only after obtaining a license, satisfying tax and fee requirements, and enforcing the age limit where required. “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,” Hanaway said. “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.” She added: “Failure to comply will result in enforcement action by the State of Missouri.” The state remains open to future legislative changes but demands adherence to current rules.

Federal Preemption Claims

The core dispute concerns whether these products fall under federal commodities law or state gambling statutes. Hanaway cited federal court decisions holding that online sports wagering platforms remain subject to state law. Her office argues that the Commodity Exchange Act does not preempt Missouri rules and that the contracts do not qualify as swaps under exclusive federal oversight.

Robinhood responded that its event contracts “are federally regulated by the [Commodity Futures Trading Commission] and offered through Robinhood Derivatives, LLC, a CFTC-registered entity, allowing retail customers to access prediction markets in a safe, compliant, and regulated manner.” Polymarket stated that prediction markets “are regulated by the Commodity Futures Trading Commission under a federal framework, not a patchwork of state rules.”

The Legal Conflict

This action tests the boundary between federal commodities oversight and state authority over sports wagering. The 30-day deadline forces the named operators to choose between licensing under Missouri rules or exiting the market. As reported by Yogonet International, the outcome will turn on whether courts accept the federal preemption arguments or uphold the state’s position.

Reporting: Yogonet International

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