Missouri AG Sends Cease-and-Desist Letters to Six Prediction Market Operators

Missouri Attorney General Catherine Hanaway has ordered six prediction market companies to stop offering sports event contracts to Missouri residents.

The cease-and-desist letters were sent to Polymarket, Kalshi, Crypto.com, Novig, Underdog, and Robinhood. Hanaway’s office argues that the companies are offering unregulated sports wagering in the state.

The AG’s office says calling these products “event contracts” does not exempt the companies from Missouri’s gambling laws.

The Core Allegation: Sports Bets by Another Name

Hanaway’s main argument is simple: calling a sports wager an “event contract” does not change what it is.

Her office alleges that all six companies are offering sports wagering in Missouri without governance from the Missouri Gaming Commission. According to the AG, that puts the companies in violation of the state’s sports betting rules.

The AG’s office also rejected the argument that federal law prevents Missouri from regulating these products.

Hanaway’s office argues that sports event contracts are not “swaps” covered by the federal Commodity Exchange Act. Prediction market operators have used federal regulation as part of their legal arguments in other states.

The Missouri AG’s office also pointed to federal court rulings that it says support the state’s position that online sports wagering platforms can still be subject to state gambling laws.

Missouri is just one of many states to push back against prediction markets. Connecticut recently cracked down on nine platforms.

What Missouri Law Requires, and Why Age Verification is Central to the Dispute

Missouri voters approved Amendment 2 in November 2024, regulating sports wagering and giving the Missouri Gaming Commission authority over the market.

Regulated sports betting officially launched in Missouri on December 1, 2025.

Under the state’s rules, companies offering sports wagering through mobile apps, websites, or retail locations must receive a license from the Missouri Gaming Commission.

Regulated operators are also subject to a 10% state tax on sports wagering revenue. That money helps cover regulatory costs and supports problem gambling programs and education.

The system approved by voters also includes consumer protection requirements. Hanaway argues that prediction market operators must follow those rules if their products qualify as sports wagering under Missouri law.

Age verification is another major part of the dispute.

Missouri requires sports bettors to be at least 21 years old. Operators must verify a user’s age before allowing them to open an account or place a wager.

Hanaway’s office alleges that five of the six companies (Polymarket, Kalshi, Crypto.com, Underdog, and Robinhood) either allow underage users to access their products or do not have strong enough safeguards to prevent Missouri residents under 21 from participating.

That adds a consumer protection issue to the larger debate over whether prediction markets should be regulated as sports betting.

What’s Next

Hanaway has directed all six companies to stop offering sports event contracts to Missouri residents unless they receive the proper permits from the Missouri Gaming Commission.

The AG’s office says companies that do not comply could face enforcement action from the state.

Missouri’s action is another development in the growing fight over prediction markets and sports event contracts across the US.

The main issue remains whether these contracts should be regulated as federally overseen financial products or as sports wagering under state gambling laws.

Missouri has made its position clear: companies offering sports event contracts must follow the same state rules as regulated sportsbooks if those products qualify as sports wagering.