Kalshi Sues Missouri, Crypto.com Sues Utah

Prediction market operators have opened another legal front in two states. Kalshi has sued Missouri state officials over licensing demands. OG.com, backed by Crypto.com, is seeking protection against state enforcement in Utah.

Kalshi has taken Missouri Attorney General Catherine Hanaway and the Missouri Gaming Commission to federal court. The company wants the state's gambling laws, as applied to its sports event contracts, blocked from enforcement. The lawsuit follows a cease-and-desist letter Missouri sent on September 16. The letter claims Kalshi is operating an unlicensed sports betting platform.

According to Kalshi, the state's licensing requirements offer no realistic path to compliance. Two standalone mobile sports betting licenses in Missouri were issued to DraftKings and Circa Sports, while other licenses require a connection to a casino or professional sports team. The company also challenges the state's actions on the basis of federal regulation and the Supremacy Clause of the Constitution.

In Utah, OG.com is pursuing a similar request for protection. In a separate development, a Citizens report found that iGaming revenue in the United States rose 12 percent year over year in the third quarter. The growth rate was 16 percent in the second quarter and 19 percent in the first quarter, making it the weakest quarterly growth on record.