The case, filed on November 8 in the US District Court for the Western District of Missouri and assigned to Judge Beth Phillips, seeks a preliminary injunction stopping state officials from enforcing Missouri’s gambling laws against Underdog’s federally regulated markets, with the company arguing that the Commodity Exchange Act preempts state gambling law. Missouri is the eighth state Underdog has sued, after Ohio, Massachusetts, Wisconsin, New Mexico, Washington, Connecticut, and Tennessee.
Jeremy Levine, CEO of Underdog, stated:
“We think sports event contracts are swaps, and they’re to be regulated federally by the CFTC.”
In September 2026, Hanaway’s office told Underdog, Kalshi, Polymarket, Crypto.com, Novig, and Robinhood to stop offering sports event contracts in Missouri unless they obtained a Missouri Gaming Commission license, paid the 10% tax on adjusted gross revenue, and blocked under-21s.
Catherine Hanaway, Missouri Attorney General, 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.”
Kalshi, Novig, and Crypto.com have already filed their own suits and are all now seeking preliminary injunctions, while Missouri has asked to merge Novig’s case with Kalshi’s in St. Louis and must respond to Crypto.com’s motion by November 23, 2026. Additionally, Polymarket and Robinhood are the only recipients of the letters that haven’t gone to court.
