Crypto.com and Novig Sue Missouri as Market Leaders Hold Back — Eighth Circuit Now in Play via Iowa
Crypto.com and Novig filed federal lawsuits on October 16 challenging Missouri's cease-and-desist orders, arguing their sports event contracts fall under exclusive CFTC jurisdiction. The suits came as Missouri's 30-day compliance window closed. Notably, the market leaders — Kalshi, Polymarket, Robinhood, and Underdog — have not sued; Missouri said it is in 'ongoing discussions' with Kalshi. The outcome is tied to the Eighth Circuit, now weighing the same question in Kalshi's Iowa appeal — the fourth federal circuit to take up the prediction market question.
Crypto.com and Novig filed federal lawsuits against Missouri on October 16, 2026, as Missouri's cease-and-desist compliance window began to close, challenging the orders AG Catherine Hanaway issued to six operators on September 18. The companies argue their sports event contracts fall under exclusive CFTC jurisdiction and cannot be regulated under state gambling law. Novig is seeking preliminary and permanent injunctions. Missouri's letters had required each operator to obtain a Missouri Gaming Commission licence and pay the state's 10% wagering tax, or stop. The two that sued are relatively small operators for whom the suit is a bet-the-product decision; it keeps them in the Missouri market while the preemption question is litigated.
For UK readers, the revealing detail is who did not sue. Kalshi, Polymarket, Robinhood, and Underdog — including the two market leaders — did not file against Missouri. Missouri said in early October it was in 'ongoing discussions' with Kalshi, with a lawsuit possibly to follow. The restraint contrasts with the leaders' aggressive counter-suits elsewhere. One explanation is tactical: with the Eighth Circuit already set to rule on the same question in the Iowa case, the leaders may see little value in opening a separate Missouri front when the circuit ruling will govern Missouri anyway. Another is resources: the smaller operators cannot afford to wait out the appellate process and need an immediate injunction to keep operating. The split mirrors Connecticut, where smaller operators withdrew while Kalshi and Polymarket held firm.
The Eighth Circuit is the critical forum. Kalshi sued Iowa for a preliminary injunction against state enforcement (KalshiEX LLC v. Bird, S.D. Iowa), and Judge Stephen H. Locher denied it in September 2026, finding Kalshi unlikely to succeed on preemption. Kalshi filed an interlocutory appeal to the Eighth Circuit (No. 26-2874), opening brief due November 6. The circuit's ruling will bind federal courts across Iowa, Missouri, and five other states — so the Iowa appeal will effectively decide the Missouri litigation too. Novig's complaint explicitly references the pending Iowa appeal and asks the court to preserve the status quo while the Eighth Circuit considers the question. The Missouri cases and the Iowa appeal are now functionally linked.
The Iowa appeal makes the Eighth Circuit the fourth federal circuit to take up the question, after the Third (for Kalshi), the Ninth, and the Sixth (both against). If the Eighth rules against Kalshi, the split widens to 3-1, strengthening the case for Supreme Court review and further isolating the Third Circuit's position. If it rules for Kalshi, the split evens to 2-2, a more balanced conflict that still demands SCOTUS resolution but without a clear directional trend. Either way, the proliferation of circuit rulings reinforces the central dynamic of the fight: the question is being litigated in parallel across the federal judiciary, rulings are accumulating faster than any single case can resolve them, and only the Supreme Court can produce a binding national answer. The Eighth Circuit's ruling, expected in the coming months, is the next major milestone — and it will determine the fate of the Missouri enforcement campaign regardless of which operators chose to sue.
Operators mentioned in this article
Recent updates
Ohio Escalates Post-Sixth Circuit — Cease-and-Desist to 10 Operators, but Platforms Keep Operating
Emboldened by its Sixth Circuit win, Ohio escalated enforcement. Governor Mike DeWine and the Ohio Casino Control Commission issued cease-and-desist letters dated October 2 to 10 operators, including Polymarket and Robinhood, with an October 16 deadline and penalties up to the value gained from contracts. Kalshi was excluded because a court order already covers it. As of October 20, platforms were still operating in Ohio despite the deadline. Polymarket has sued the Commission and AG Andy Wilson; Wilson is expected to sue non-compliant operators.
Midterm Election Betting Tops $220M — Double the Entire 2024 Cycle — as Public Opposition Mounts
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Taiwan and Norway Move Against Kalshi — International Blocks Spread on Two Different Legal Theories
International enforcement against prediction markets accelerated in mid-October. A New Taipei District Court ordered Taiwan to block Kalshi and Coinbase on October 15 under Taiwan's election law, which prohibits profit-driven gambling tied to election results, roughly six weeks before Taiwan's November 28 local elections. Separately, Norway's regulator Lotteritilsynet proposed DNS-blocking 62 unlicensed sites including Kalshi and Polymarket, with operators given until October 15 to respond. The two actions rest on different legal theories — election-integrity law in Taiwan, gambling-licensing law in Norway.