Missouri sues Novig over federal law claims as Polymarket files countersuit

Missouri’s attorney general has sued prediction market platform Novig, alleging violations of federal gambling laws, while Polymarket’s U.S. entity filed a separate lawsuit the same day to block Missouri’s regulatory action, Bitcoin.com reported. Missouri prosecutors also alleged Novig violated the state’s merchandise practices law and are seeking refunds and civil penalties of up to $1,000 per violation. Novig registered in June as a designated contract market with the U.S. CFTC. In response, Novig argued jurisdiction over event contracts regulated under the Commodity Exchange Act rests with the CFTC and that state authorities cannot apply gambling laws to those contracts. Polymarket’s U.S. entity separately argued Missouri’s licensing system discriminates against out-of-state operators. Polymarket said licenses are centered on in-state casinos and sports teams, and argued rules requiring betting-processing servers to be located in the state and allowing transactions only for state residents are designed to protect incumbent operators. In September, Missouri sent cease-and-desist letters to six operators: Polymarket, Kalshi, Novig, Crypto.com, Underdog, and Robinhood.