Prediction market companies ordered to end sports 'event contracts' in Missouri

By Danny Jimenez, Missouri News NetworkTop of Form
The Missouri attorney general’s office has ordered several prediction market companies to stop all “sports-related event contracts,” according to a news release from Attorney General Catherine Hanaway.
Polymarket, Kalshi, Crypto.com, Novig, Underdog and Robinhood were all directed through cease-and-desist letters to stop offering sports event contracts.
The letters accuse the companies of operating sports wagering outside of the framework established by voters in 2024.
“Missourians voted for a safe, well regulated sports wagering market that supports public education and addresses problem gambling,” Hanaway said in the release. “Companies cannot repackage sports bets as ‘event contracts’ to avoid Missouri law. We will enforce the rules voters approved and protect consumers.”
Hanaway urged the companies to comply with state law and desist from offering sports event contracts in the state without license from the Missouri Gaming Commission.
Hanaway said licensed sports betting operators in Missouri pay a 10% tax on adjusted sports betting revenues and pay a five-year license renewal fee of up to $500,000. She said these six companies are not contributing their required amount to the state as outlined in the 2024 framework.
The attorney general said the six companies have a timeline of 30 days from Sept. 16 to comply or the state will take “enforcement action.”
Federal courts have previously ruled that online sports wagering platforms, like those offered by these prediction market operators, are subject to state gambling laws.
Missourians approved Amendment 2 in 2024. That amendment legalized and regulated sports betting, placing oversight with the Missouri Gaming Commission and required that no one under 21 be able to place a bet.
The attorney general’s office alleges that Polymarket, Kalshi, Crypto.com, Underdog and Robinhood all lack adequate safeguards to prevent Missourians under 21 from participating in sports wagering.