Kalshi files lawsuit against Missouri AG over cease-and-desist letter

COLUMBIA, Mo. (KMIZ)

Online prediction market app Kalshi filed a lawsuit on Tuesday against Missouri Attorney General Catherine Hanaway after she issued a cease-and-desist letter last month.

Hanaway had sent letters to Kalshi, Polymarket, Crypto.com, Novig, Underdog and Robinhood cease-and-desist letters after claiming sports-related contracts is considered unlicensed sports gambling under Missouri law.

Kalshi argues in its lawsuit – which was filed in Missouri’s Eastern District Court – that state laws attempting to regulate the “contract market” violates the Supremacy Clause of the U.S. Constitution.

The lawsuit claims Kalshi cannot be regulated by state laws because it is already federally regulated and “operates under the exclusive oversight of the CFTC and its enabling statute.”