Underdog sues Missouri officials, says state warned of enforcement within three days
Underdog filed a federal suit on Nov. 8 asking a court to stop Missouri from applying its gambling laws to its CFTC-regulated sports event contracts.
Underdog has sued Missouri’s attorney general and gaming regulators in federal court, asking a judge to stop the state from applying its gambling and sports wagering laws to Underdog’s event contracts. The case, Underdog Exchange DCM, Inc. v. Hanaway, was filed on November 8, 2026, in the U.S. District Court for the Western District of Missouri, and the court docket shows a preliminary injunction motion filed the same day.
The plaintiffs are Underdog Exchange DCM, Inc., which runs a CFTC-designated exchange, and UDM, LLC, which does business as Underdog Predict and is a registered futures commission merchant. The defendants are Attorney General Catherine Hanaway and the executive director, chairman and commissioners of the Missouri Gaming Commission, all sued in their official capacities.
Why Underdog filed now
The complaint, published by SBC Americas, traces the dispute to a September 17 cease-and-desist letter from the attorney general’s office. That letter told Underdog to stop offering what the state calls sports wagering in Missouri or get a license from the Gaming Commission. The deadline was later extended from October 17 to October 30.
Underdog alleges that on November 6, the attorney general’s office told the company the state intends to begin enforcement proceedings against it within three days. Underdog argues this leaves it with two harmful choices: keep operating and risk civil and criminal penalties, or leave a market it says federal law allows it to serve.
The legal argument
The complaint makes three preemption claims under the Supremacy Clause: express, field and conflict preemption. Underdog argues the Commodity Exchange Act gives the CFTC exclusive jurisdiction over trading on designated contract markets, so Missouri cannot require a state license for those contracts.
It also points to the CFTC’s November 5 interpretation of the “impartial access” rule, which Underdog says requires exchanges to drop domestic geographic restrictions within 30 days. Underdog argues that if it stopped serving Missouri users, it would break that federal obligation.
The company asks for a declaratory judgment that Missouri’s gambling laws are preempted as applied to its exchange and its role in trades on other exchanges, and for an injunction barring the defendants from enforcing them.
Part of a wider Missouri fight
Underdog was one of several prediction markets to receive Missouri cease-and-desist letters on September 17. Novig and OG.com sued Missouri officials in October, and Underdog has already gone to court against Connecticut, among other states.
As of November 9, the docket shows no ruling on Underdog’s preliminary injunction motion. SBC Americas reports that the motion seeks to stop Missouri from taking enforcement action.
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