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Underdog has filed a lawsuit seeking to stop Missouri officials from enforcing state gambling laws against its prediction markets, according to Gaming America. The company requested a preliminary injunction after receiving a cease-and-desist letter from the state.
The lawsuit adds to a dispute over whether sports event contracts fall under federal derivatives regulation or Missouri’s sports wagering requirements.
Missouri demands sports wagering licenses
Missouri Attorney General Catherine Hanaway sent cease-and-desist letters in September to Underdog, Kalshi, Polymarket, Crypto.com, Novig and Robinhood.
“Missourians voted for a safe, well‑regulated sports wagering market that supports public education and addresses problem gambling,” Hanaway said in a statement quoted by Gaming America.
Her enforcement position is that companies cannot avoid Missouri gambling law by offering sports bets as event contracts.
“Any company that wants to offer sports wagering in Missouri must be licensed by the Missouri Gaming Commission, pay the required taxes and fees, and ensure no one under 21 can place a bet,” Hanaway said.
Crypto.com, Kalshi and Novig also filed a lawsuit against Hanaway and the Missouri Gaming Commission, according to Gaming America.
Missouri launched online sports betting in December 2025. DraftKings and Circa Sports received the state’s two independent licenses; other sports betting licenses require partnerships with casinos or professional sports teams.
Underdog argues for federal regulation
Underdog’s position is that its sports event contracts belong under the jurisdiction of the Commodity Futures Trading Commission, rather than state gambling regulators.
“We think sports event contracts are swaps, and they’re to be regulated federally by the CFTC,” Jeremy Levine said, according to Gaming America.
Missouri is the eighth state Underdog has sued, following Connecticut, Massachusetts, New Mexico, Ohio, Tennessee, Washington and Wisconsin.
The company launched its prediction market platform in July and expanded its availability from 38 states to 46. It also gave up daily fantasy sports licenses in seven states to focus on prediction markets.
Underdog announced a deal with the Kansas City Royals in 2025 to submit a Missouri sports betting license application, but later withdrew to concentrate on prediction markets.
Levine said the company could change which products it offers in a state if necessary: “If things change, we could turn off a state, turn off prediction markets in a state and have it just be fantasy, or vice versa, in real time. We’re built for it.”
More from playmissouri.com
- Underdog Leaves Missouri Sports Wagering Market to Focus on Prediction Games
- Underdog Boosts Marketing Deal with St. Louis Blues
- Underdog Partners with Kansas City Royals, Enabling Tethered License Bid in Missouri
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Source: As reported by Gaming America.
This article was created with the assistance of AI and is monitored by our editorial team.
