JEFFERSON CITY — Missouri's attorney general has directed six online prediction market operators to stop offering sports-related contracts in the state, saying the companies are effectively operating outside the regulatory framework voters approved in 2024.
Order targets major platforms
The Attorney General's Office on Thursday issued cease-and-desist letters to Polymarket, Kalshi, Crypto.com, Novig, Underdog and Robinhood, telling them to discontinue "sports-related event contracts" or risk enforcement action. The letters give the companies 30 days from Sept. 16 to come into compliance.
“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.”
The order says the named platforms are not contributing the fees and taxes required under the constitutional amendment approved by voters last year. Amendment 2 in 2024 legalized and regulated sports betting in Missouri, placing oversight with the Missouri Gaming Commission and raising the minimum age for bettors to 21.
What's at stake for operators and consumers
In her news release, the attorney general noted that licensed operators pay a 10% tax on adjusted sports betting revenues and may be required to pay license renewal fees up to $500,000 every five years. The cease-and-desist letters assert the six firms named have not been operating under a Missouri license or paying the required amounts.
| Requirement | Amount |
|---|---|
| Tax on adjusted sports betting revenues | 10% |
| Five-year license renewal fee | Up to $500,000 |
The attorney general also raised concerns about age verification, saying the companies lack adequate safeguards to prevent Missourians under 21 from participating in sports wagering.
Broader legal context
Federal courts have previously found that online wagering platforms are subject to state gambling laws. The AG's action aims to apply that precedent to prediction markets that allow users to bet on sports outcomes while labeling the contracts as events rather than traditional wagers.
- Six companies received cease-and-desist letters: Polymarket, Kalshi, Crypto.com, Novig, Underdog and Robinhood.
- Companies have until 30 days from Sept. 16 to comply or face enforcement.
- Missouri voters approved Amendment 2 in 2024, setting rules and taxes for licensed sports betting and raising the minimum age to 21.
The move is likely to prompt responses from the targeted companies and may lead to legal challenges. For Missourians, it underscores that the state's post-Amendment 2 regulatory regime is actively being enforced and that platforms offering betting-like products may be required to obtain a Missouri Gaming Commission license or alter their offerings to remain available in the state.
Coverage will continue as companies respond and the Attorney General's Office outlines any follow-up enforcement steps.
