Underdog sues Missouri AG Hanaway over prediction market crackdown
Underdog filed a federal lawsuit against Missouri Attorney General Catherine Hanaway on Sunday, November 8, challenging a state cease-and-desist order that sought to shut down its prediction markets. The suit was filed in the U.S. District Court for the Western District of Missouri by Underdog Exchange DCM Inc. Underdog becomes the fourth prediction market operator to challenge state enforcement actions in federal court.
Underdog's lawsuit tests whether collective federal challenges can reverse the pattern where Kalshi's solo Sixth Circuit effort failed after Ohio and Tennessee stripped its federal shield. Crypto.com and Novig have already filed their own Missouri challenges, and Kalshi's separate Missouri suit remains active.
Polymarket and Robinhood took Missouri orders without suing, so each courtroom outcome signals whether fighting or settling is smarter for holdouts. The Supreme Court looms as circuit splits deepen, with the NFL urging justices to back state gambling authority. Underdog's decision to join the federal fight rather than geofence raises the litigation stakes for every platform still calculating its state-by-state risk.