PrizePicks has decided to cease offering its sports event contracts in Missouri, despite not being included in the cease-and-desist actions initiated by Attorney General Catherine Hanaway last month. A spokesperson confirmed that the company notified its Missouri customers via email on Tuesday about the suspension of Team Picks, its sports prediction markets product.
According to the email, PrizePicks stated that this action was taken “due to updated legal requirements for prediction markets in Missouri.” The communication informed users that they could no longer submit new Team Picks while present in Missouri. However, any entries already submitted will remain active, and winning selections will be paid out upon market closure. Users also have the option to withdraw their funds at any time. Notably, Culture Picks, which focuses on entertainment and non-sports events, continues to be available within the state.
In June, Hanaway’s office sent cease-and-desist letters to several companies, including Crypto.com, Kalshi, Novig, Polymarket, Robinhood, and Underdog, asserting that their sports event contracts constituted unauthorized sports wagering. The companies were given a month to comply with Missouri law or discontinue their sports wagering offerings.
PrizePicks, which is licensed as a daily fantasy sports operator by the Missouri Gaming Commission since 2024, continues to operate its Player Picks DFS product in the state. The commission is the same body that Hanaway states must oversee anyone offering sports wagering. It is also worth noting that Team Picks operates through PrizePicks’ subsidiary, Performance Predictions II, which facilitates the sale of Kalshi contracts in its app.
Other companies have also made similar adjustments in response to regulatory pressures. For instance, Robinhood agreed to stop offering new sports event contracts in Michigan last month, while Gemini and Webull reportedly withdrew their offerings following Connecticut’s cease-and-desist orders.
Kalshi has taken the initiative to defend its position publicly, with Head of Research Nicole Kagan engaging with local media in Missouri. In an interview with St. Louis Public Radio, Kagan likened Kalshi’s contracts to agricultural exchanges that help farmers mitigate risk. She emphasized that the platform does not set odds and does not profit from customers' losses, stating, “A sports book’s incentive, of course, is for you to lose… On our platform, you’re actually just matching with somebody who has an opposing opinion to you.”
Hanaway's stance hinges on issues surrounding licensing, taxation, and age restrictions. Missouri legalized sports betting in 2024, establishing a 21-and-over restriction, and imposing a 10% tax on gross receipts. In contrast, prediction markets permit users as young as 18. Hanaway’s office asserts that five of the six operators, including Kalshi, either lack sufficient safeguards to prevent underage users or allow their participation.
“Companies cannot repackage sports bets as ‘event contracts’ to avoid Missouri law,” Hanaway stated during the announcement of the cease-and-desist letters.
The legality of sports event contracts may ultimately be decided by the U.S. Supreme Court, considering conflicting rulings from various Circuit Courts of Appeals regarding the jurisdiction of states versus the federal Commodity Futures Trading Commission over prediction markets. While the Sixth and Ninth Circuits have concluded that states can enforce their gambling laws against such products, the Third Circuit recently ruled in favor of Kalshi in a case in New Jersey. New Jersey, along with other entities, has requested Supreme Court clarification on the issue.
In a related decision, Ohio’s regulator dispatched cease-and-desist letters to ten prediction market companies last week, referencing the Sixth Circuit’s position. Kalshi’s case against Ohio contributed to the legal discussions surrounding the sixth circuit’s ruling.
