Crypto.com and Novig Sue Missouri to Block Sports Prediction Crackdown

Crypto.com and prediction-market operator Novig have filed a lawsuit against the state of Missouri, seeking to block the state's crackdown on sports prediction markets, according to the complaint filed in federal court.

The two companies argue that Missouri's enforcement posture threatens their ability to offer sports event contracts to customers in the state. The suit names state officials and seeks judicial relief that would prevent Missouri regulators from applying local gambling and wagering rules to the platforms' prediction market products.

What does the complaint ask for?

Crypto.com and Novig request that the court bar Missouri from enforcing its crackdown while the litigation proceeds. The companies contend that their sports prediction products operate under federal oversight of designated contract markets rather than under state gambling statutes.

The filing positions the case as a test of whether states can regulate sports event contracts offered by platforms that structure them as prediction markets. That question has grown more consequential as exchanges have expanded from crypto and election contracts into sports outcomes.

Who are the parties?

Crypto.com, the Singapore-headquartered exchange led by CEO Kris Marszalek, launched sports event contracts for United States customers in recent months. Novig is a prediction-market platform focused on sports outcomes. Both companies face state-level pushback as they scale the product line.

Missouri is not alone in examining the sector. Several states have moved against sports prediction markets in recent months, and operators have responded with litigation in more than one jurisdiction. The Missouri case adds another venue to that widening legal fight.

What does the dispute turn on?

The core legal question is classification. If sports event contracts count as derivatives traded on regulated exchanges, federal commodities law governs them. If they count as sports wagering, state gaming commissions hold authority.

Missouri treats the products as gambling subject to its licensing regime. The platforms disagree and have asked a federal court to settle the boundary. The outcome will shape how — and whether — sports prediction markets can operate in the state.

What comes next?

The court will now consider the companies' request for relief, and Missouri's defendants face a response deadline in the coming weeks. A ruling on preliminary relief would signal whether the platforms can keep their sports contracts live in Missouri while the broader regulatory fight continues.