Missouri Countersues Novig Citing Federal Anti-Gambling Law; Polymarket U.S. Sues State Attorney General

Odaily: Missouri has countersued Novig citing federal anti-gambling law, and Polymarket U.S. has sued the state attorney general.

Missouri Attorney General Catherine Hanaway filed a countersuit on November 9 in federal court against prediction market platform Novig, invoking the 2006 Unlawful Internet Gambling Enforcement Act and asking the court to prohibit Novig from accepting funds from Missouri residents related to illegal internet gambling. Missouri claims that betting without a license from the state gaming commission violates state law.

On the same day, QCX LLC, the operator of Polymarket U.S., sued Hanaway and five gaming commission members, arguing that the Commodity Exchange Act preempts the application of Missouri's sports betting regulations to its exchange and that the state licensing regime discriminates against out-of-state companies. The company said Missouri's licenses are open only to in-state casino boats and sports teams, and that it requires bet-processing servers to be located within the state.

In September, Hanaway sent cease-and-desist letters to Polymarket, Kalshi, Novig, Crypto.com, Underdog, and Robinhood, saying that the relevant sports contracts constitute unlicensed sports betting. Novig sued Missouri officials in October, arguing that the federal Commodity Futures Trading Commission has exclusive jurisdiction over event contracts on federally designated exchanges. (Bitcoin.com News)