North American Derivatives Exchange, the entity behind Crypto.com’s OG prediction markets platform, and Ludlow Exchange LLC, operating as Novig, filed separate federal lawsuits on October 16 seeking to prevent Missouri from applying its sports-wagering laws to their sports event contracts. The actions came at the close of a 30-day window set by Missouri Attorney General Catherine Hanaway in cease-and-desist letters issued in mid-September.

Separate Cases in Eastern and Western Districts

Ludlow Exchange LLC filed its complaint, captioned Ludlow Exchange, LLC v. Hanaway et al., in the U.S. District Court for the Eastern District of Missouri under case number 4:26-cv-01780. North American Derivatives Exchange Inc., doing business as OG.com Prediction Markets, filed North American Derivatives Exchange, Inc. v. Hanaway et al. in the Western District of Missouri under case number 4:26-cv-00969.

Both companies seek declaratory relief and injunctions barring state officials from enforcing Missouri’s sports-betting framework against their contracts. Defendants in the Novig action include Hanaway and Missouri gaming officials Michael Lear and Jan Zimmerman. The Crypto.com-linked exchange is seeking a permanent injunction and a ruling that federal law governs the products.

Missouri’s September Enforcement Push

Hanaway’s office sent cease-and-desist letters dated September 16 and 17 to six prediction-market operators, including the two plaintiffs along with Kalshi, Polymarket, Robinhood and Underdog. A public announcement followed on September 18. The letters required recipients either to stop offering sports event contracts to Missouri residents or to obtain state authorization within 30 days.

Missouri voters approved Amendment 2 in November 2024, establishing a regulated sports-wagering system. Legal sports betting began on December 1, 2025, under the Missouri Gaming Commission. Licensed operators must pay a 10 percent tax on gross sports betting receipts and restrict participation to individuals aged 21 and older. The state’s constitutional framework currently provides only two direct mobile sports-wagering licenses, both of which have already been awarded.

The attorney general’s office maintained that the contracts constitute unlicensed sports wagering. It further alleged that five of the six targeted operators either permitted users younger than 21 or lacked adequate age-verification safeguards. Hanaway’s letter to the Crypto.com platform specifically cited access by users as young as 18. Novig was not named in that particular age-related claim in the public announcement.

Federal Preemption Claims

Both plaintiffs argue that the Commodity Exchange Act grants the Commodity Futures Trading Commission exclusive jurisdiction over the sports event contracts traded on their CFTC-regulated platforms. They contend Missouri therefore cannot treat the contracts as conventional sports wagers subject to state gambling statutes, licensing requirements or taxes.

North American Derivatives Exchange also raised a procedural objection, stating that Hanaway’s cease-and-desist letter was addressed to Foris DAX Inc. rather than the exchange itself. The company further noted that obtaining a Missouri sports-betting license is not a practical option given the limited number of available licenses.

Novig requested both preliminary and permanent injunctive relief. Its filing references a related Kalshi matter pending before the U.S. Court of Appeals for the Eighth Circuit, which includes Missouri, and asks the district court to maintain the status quo while that appeal proceeds. Ludlow Exchange received CFTC designated contract market status in June.

Broader Context and Other Operators

As of the most recent court-record reviews, Crypto.com’s exchange and Novig are the only two of the six recipients known to have filed federal lawsuits in Missouri. Kalshi had engaged in discussions with the attorney general’s office prior to the deadline, with state officials describing those talks as ongoing in early October. Polymarket, Robinhood and Underdog had not initiated comparable actions in either of Missouri’s federal districts.

Federal appeals courts remain divided on the underlying preemption question. The Sixth and Ninth Circuits have ruled against Kalshi’s position in related disputes, while the Third Circuit has sided with the company. The Eighth Circuit is currently examining the issue through separate Iowa litigation involving Kalshi.

Novig has previously filed similar challenges in other states, including Wisconsin, New York, Massachusetts, Washington and New Mexico. Crypto.com launched its OG prediction markets platform in February 2026, offering sports, financial and cultural event contracts through its federally regulated derivatives infrastructure.

The lawsuits place Missouri’s enforcement effort before federal courts but do not themselves resolve the jurisdictional dispute. No information is available on how the state will respond or whether enforcement actions will proceed while the cases are pending.