Mo. (KCTV) – Missouri’s top attorney general is attempting to crack down on unlicensed prediction markets, sending cease-and-desist letters to several companies, including Polymarket and Kalshi
In total, Missouri Attorney General Catherine Hanaway issued cease-and-desist letters to six companies for offering sports “event contracts” to Missourians. Hanaway said the “event contracts” constitute unlicensed sports betting under Missouri law.
The cease-and-desist letters were sent to Polymarket, Kalshi, Crypto.com, Novig, Underdog and Robinhood.
“Missourians voted for a safe, well‑regulated sports wagering market that supports public education and addresses problem gambling. Companies cannot repackage sports bets as ‘event contracts’ to avoid Missouri law. We will enforce the rules voters approved and protect consumers,”Hanaway said Friday. “Any company that wants to offer sports wagering in Missouri must be licensed by the Missouri Gaming Commission, pay the required taxes and fees, and ensure no one under 21 can place a bet.”
Hanaway cited federal court rulings regarding online sports wagering platforms, like the trades offered for games by prediction market operators, as subject to state gambling laws. The Missouri AG said sports event contracts do not qualify as swaps governed by the federal Commodity Exchange Act as frequently claimed by illegal online sportsbooks.
Sports betting was legalized by Missourians in a vote in the 2024 election. In doing so, oversight by the Missouri Gaming Commission was put into place and the market was launched Dec. 1, 2025.
Hanaway cited the Missouri constitutional framework of a well-regulated system that includes robust age verification to ensure no one under 21 can place a wager. The six companies Hanaway wrote letters to either permit underage users to access their sites or lack adequate safeguards to prevent Missourians under 21 from participating.
“Failure to comply will result in enforcement action by the State of Missouri,” Hanaway said Friday. Each of the letters sent to the companies requested compliance with Missouri’s law within 30 days.
Read the letters sent to Kalshi, Polymarket, Crypto.com, Novig, Underdog and Robinhood by clicking on each company’s name.
A Polymarket spokesperson said the markets are not regulated by state rules.
“Polymarket US maintains that prediction markets are regulated by the Commodity Futures Trading Commission under a federal framework, not a patchwork of state rules.”
KCTV has reached out to each company for comment and will update this story as responses are shared.
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