Missouri AG Targets Prediction Market Platforms Over Illegal Gambling Claims

Missouri AG has sent letters to six prediction market companies in the state, including Polymarket and Kalshi, America’s leading prediction market platforms, over their offering of event contracts, which the state’s top attorney has characterized as 'illegal gambling.'

The AG’s office claims that the companies are offering illegal sports wagering. The entities now have 30 days to comply or face enforcement action. Polymarket US maintains that prediction markets are regulated by the Commodity Futures Trading Commission under a federal framework, not a patchwork of state rules.

In a statement announcing the cease-and-desist letters targeting Polymarket, Kalshi, Underdog, Robinhood, Crypto.com and Novig, Hanaway said: '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.' Robinhood similarly objected to the AG’s allegations: 'Robinhood’s event contracts are federally regulated by the CFTC and offered through Robinhood Derivatives, LLC, a CFTC-registered entity, allowing retail customers to access prediction markets in a safe, compliant, and regulated manner.'