Missouri prediction market litigation escalated Monday as Robinhood and Polymarket filed federal suits against state officials while the state countersued Novig over sports event contracts.
Prediction market litigation intensified in Missouri, where Robinhood and Polymarket filed separate federal suits against state officials on Monday. Missouri countersued Novig under the Unlawful Internet Gambling Enforcement Act and sought up to $1,000 per violation. Arkansas operators filed similar challenges the same day after Kalshi’s November 4 lawsuit.
- Missouri Prediction Market Lawsuits Widen
- Arkansas Operators Challenge Enforcement
- Tribes Back New York Against Kalshi
- The CFTC Battle Over Preemption
Missouri prediction market litigation stepped up sharply on Monday. Robinhood and Polymarket filed separate federal suits against state officials, arguing that CFTC jurisdiction controls their sports event contracts rather than state gaming regulators. Missouri responded by filing counterclaims against Novig.
The state solicitor general warned operators on Nov. 6 that officials intended to seek a court order compelling compliance within three days. Underdog filed a similar challenge Sunday after receiving notice of imminent enforcement. Crypto.com, Novig and Kalshi had already sued Missouri, following cease-and-desist letters from Attorney General Catherine Hanaway to all six operators in September.
Missouri prediction market litigation widens as state countersues Novig
Hanaway filed counterclaims against Novig in the operator’s existing complaint. Missouri alleges that Novig violates the federal Unlawful Internet Gambling Enforcement Act and the state’s Merchandising Practices Act. The state also asserts that Novig’s activity constitutes a public nuisance under state law.
Missouri is seeking an injunction to block Novig from accepting payments connected to sports wagering. The state is also seeking restitution and civil penalties of up to $1,000 for each violation. It wants the court to declare Novig’s operation a public nuisance.
Arkansas operators challenge enforcement in federal court
Arkansas prediction market litigation followed a similar path. Crypto.com’s OG.com and Polymarket filed federal suits against state officials, citing the state’s Nov. 4 lawsuit against Kalshi as proof of an imminent enforcement threat. Both companies argue that the Commodity Exchange Act grants the CFTC exclusive jurisdiction over their products.
Arkansas alleges that Kalshi runs an illegal gambling platform and violated state consumer protection laws. Attorney General Tim Griffin called Kalshi a “straightforward gambling platform” and a “pocket-sized bookie”. The dispute centres on whether a federally regulated exchange can keep trading across state lines or whether state licensing rules apply.
Tribes back New York against Kalshi in Second Circuit
The legal fight has not stayed within the states. A coalition of 27 federally recognized tribes and 13 tribal organizations and entities filed an amicus brief Monday supporting New York regulators in their Second Circuit dispute with Kalshi.
The coalition includes the Indian Gaming Association, the National Congress of American Indians and the Seminole Tribe of Florida. It argues that federal commodities law does not override tribal gaming rights under IGRA, and warns that Kalshi’s contracts could undermine tribal sovereignty and existing gaming compacts.
Following this, New York’s position is backed by filings from 37 state attorneys general plus the District of Columbia and the Northern Mariana Islands, the American Gaming Association and former CFTC chair Gary Gensler. The CFTC has backed Kalshi instead. A hearing last week denied Kalshi and Coinbase’s requests for injunctions in three pending cases across New York and Connecticut.
Sen. Cortez Masto accuses CFTC chair of undermining state gambling laws
The tribal groups are not alone in opposing the CFTC’s approach to prediction market litigation. Nevada Sen. Catherine Cortez Masto accused CFTC Chairman Michael Selig of encouraging prediction-market operators to disregard court rulings that limit sports event contracts in some jurisdictions.
Cortez Masto responded to Selig’s Nov. 6 directive opposing geographic restrictions on federally regulated exchanges. She argued that sports event contracts are gambling and accused the chairman of encouraging companies to violate court orders. She also alleged that the CFTC’s position was intended to benefit the Trump family, which she said is heavily invested in prediction-market platforms.
AGBrief tracks prediction-market enforcement activity across the country.
Florida and Wisconsin add pressure to the prediction market fight
Florida is among the states that have not pursued enforcement against prediction-market platforms, even as it protects the Seminole Tribe’s exclusive sports betting rights. Gaming Control Commission Executive Director Alana Zimmer said the question of whether sports event contracts are financial instruments or illegal gambling is likely headed to the US Supreme Court.
In contrast, Florida is pursuing stricter control over illegal slot arcades, several bills on which failed to pass this year. Zimmer wants to upgrade criminal penalties for anyone hosting illegal slot machines.
Wisconsin faces its own legal hurdle. Eight tribes were allowed to intervene in a suit challenging the April law that legalised online betting with tribal control, subject to federal approval and compact establishment. A state judge approved the intervention on Monday. Oral arguments are set for April 2027, with a ruling expected in May.
iGaming Business covers the prediction-market and gaming-regulation disputes in detail.
Bally’s Q3 revenue rises 21.7% to $807.6 million
Away from the prediction-market disputes, Bally’s Corp. reported preliminary Q3 revenue of $807.6 million, up 21.7% year over year. Casinos & Resorts revenue rose 3.2% to $408.6 million, supported by Baton Rouge, Marquette, the Sam’s Town Shreveport acquisition and the Chicago temporary casino.
North America Interactive revenue grew 25.6% to $62.7 million, and Intralot B2C revenue rose 22.8% to $257.5 million. Bally’s will again use a filing extension, so the preliminary figures remain subject to adjustment.
Frequently Asked Questions
Who sued Missouri over prediction market contracts on Monday?
Robinhood and Polymarket filed separate federal lawsuits against Missouri state officials. Both argue that the CFTC has exclusive jurisdiction over their sports event contracts under federal commodities law.
What did Missouri countersue Novig for?
Missouri alleges that Novig violates the Unlawful Internet Gambling Enforcement Act and the state’s Merchandising Practices Act. It is seeking an injunction over sports wagering payments, restitution and civil penalties of $1,000 per violation.
Why is Kalshi facing challenges in Arkansas?
Arkansas filed a lawsuit against Kalshi on Nov. 4, alleging it runs an illegal gambling platform and broke state consumer protection laws. Crypto.com’s OG.com and Polymarket then sued the state, citing that filing as imminent enforcement.
Who is backing New York against Kalshi?
Twenty-seven federally recognized tribes and 13 tribal entities filed an amicus brief. A coalition of 37 state attorneys general, the District of Columbia, the Northern Mariana Islands, the American Gaming Association and former CFTC chair Gary Gensler supports New York.
What is the CFTC’s position?
The CFTC has backed Kalshi. Chairman Michael Selig issued a Nov. 6 directive opposing geographic restrictions on federally regulated exchanges. Sen. Cortez Masto accused the chairman of encouraging operators to disregard court orders limiting sports event contracts.
What is the Wisconsin prediction market lawsuit?
Eight tribes intervened in a suit challenging the April law that legalised tribal-controlled online betting, subject to federal approval and compact establishment. Oral arguments are set for April 2027, with a ruling expected in May.
Is Bally’s revenue growth still intact?
Yes, preliminarily. Bally’s reported Q3 revenue of $807.6 million, up 21.7%. Casinos & Resorts grew 3.2% to $408.6 million and North America Interactive rose 25.6% to $62.7 million, while the company used another filing extension.
This article has been thoroughly researched and reviewed by the CasinoBait editorial team to ensure accuracy and relevance for Asian casino players.
