Underdog Sues Missouri Attorney General And Seeks A Preliminary Injunction
Underdog Exchange DCM Inc. and UDM LLC, which trades as Underdog Predict, sued Missouri Attorney General Catherine Hanaway in federal court on November 8, 2026 and asked for a preliminary injunction, according to the court docket.
The case is Underdog Exchange DCM, Inc. v. Hanaway, No. 2:26-cv-04300, in the US District Court for the Western District of Missouri.
It is the latest challenge to Missouri's stance on sports event contracts, and it joins suits already brought by Kalshi, Crypto.com's exchange and Novig.
Our prediction markets hub tracks each case.
What The Docket Shows
The complaint was filed on November 8 by attorney Edward Dean Greim on behalf of both plaintiffs.
Its exhibits include Missouri's cease-and-desist letter to Underdog, dated September 17, 2026, and an extension letter. The same day, Underdog filed a motion for a preliminary injunction, with declarations and exhibits attached in support.
Three lawyers were admitted to appear pro hac vice on November 9, and the court assigned the case to its mediation and assessment programme. Missouri's response to the injunction motion is due by November 23, 2026, unless the court directs otherwise.
The docket text does not summarise the claims. The complaint says the Commodity Exchange Act gives the Commodity Futures Trading Commission sole authority over event contracts traded on designated contract markets, citing 7 U.S.C. § 7a-2(c)(5)(C).
The supporting papers also attach exhibits with file labels that appear to refer to NBA expansion team, MLB and NFL team sale contracts. The documents themselves were not available to read at the time of writing, so the specific contracts at issue cannot be confirmed.
Underdog's Argument
Underdog operates a federally designated contract market and is a registered futures commission merchant.
The complaint argues that Missouri officials are unlawfully exercising jurisdiction over and seeking to end its offering of derivative contracts on federally regulated markets.
The named defendants are the attorney general, the executive director of the Missouri Gaming Commission, and the commission's chairman and commissioners.
The preemption argument is Underdog's position, and no court has yet ruled on it in this case.
Missouri's Position
Hanaway announced cease-and-desist letters to six companies in September: Polymarket, Kalshi, Crypto.com, Novig, Underdog and Robinhood.
In her announcement, she said that sports-event contracts constitute unlicensed sports wagering under Missouri law and that federal law does not preempt state law in this area.
She said any company offering sports wagering must be licensed by the Missouri Gaming Commission, pay the required taxes and fees, and ensure no one under 21 can place a bet.
Missouri's sports betting market launched on December 1, 2025, with a 10% tax on gross receipts.
The attorney general's release said the companies either allow underage users to access their products or lack adequate safeguards to prevent Missourians under 21 from sports wagering.
It warned that failure to comply would bring enforcement action by the state. Licensed operators are listed in our Missouri sportsbook guide.
What Happens Next
The first test is the injunction motion.
Its outcome will determine whether Underdog can continue offering its contracts in Missouri while the broader preemption question is litigated.
We will update this story when Missouri files its response or the judge sets a hearing.
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