On Nov. 9, Missouri’s attorney general and prediction‑market operator Polymarket U.S. each filed lawsuits in St. Louis federal court, targeting the state’s attempt to block sports‑centric wagering platforms. The filings mark a new escalation in a series of legal battles across the United States where state regulators confront platforms that operate under the Commodity Futures Trading Commission’s (CFTC) contract‑market framework.

Missouri’s Counterclaim Against Novig

Attorney General Catherine Hanaway’s counterclaim accuses Novig of violating the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). The state argues that because Novig is not licensed by the Missouri Gaming Commission, any wagers it accepts from Missouri residents constitute “unlawful Internet gambling” under UIGEA, and therefore the platform should be barred from processing financial transactions for Missourians. The filing also cites the Missouri Merchandising Practices Act, seeking civil penalties of up to $1,000 per violation, and alleges that Novig’s operations create a public nuisance that deprives the state of tax revenue.

Polymarket U.S. Sues the State

Polymarket U.S., operating under the name QCX LLC, lodged its own complaint against Hanaway and five members of the Missouri Gaming Commission. The suit contends that the Commodity Exchange Act (CEA) preempts Missouri’s sports‑wagering licensing regime, which limits participation to in‑state casino boats, sports teams, and servers. Polymarket argues that the CEA creates a national pool of buyers and sellers that cannot be restricted by state licensing, and points to a CFTC interpretation issued on Nov. 5 that exchanges generally may not limit access based on a trader’s location within the United States. The complaint also references Missouri’s 1985 commodity‑law provisions that specifically exclude CFTC‑designated contract markets.

Missouri’s actions are part of a broader trend of state‑level challenges to prediction‑market platforms. Arkansas sued Kalshi on Nov. 4 under its deceptive trade practices law, while the CFTC has recently sued Utah to stop the state from enforcing its gambling statutes against federally regulated exchanges. The Missouri attorney general previously sent cease‑and‑desist letters in September to several platforms, including Kalshi, Crypto.com, Underdog, and Robinhood, labeling them as unlicensed sports‑wagering operations.