Missouri won’t go after Kalshi’s sports contracts for now. In a joint court filing on Nov. 10, Attorney General Catherine Hanaway’s office agreed to hold off on the enforcement threat that drove Kalshi to sue the state last month.
The agreement rules out criminal charges, civil actions and administrative penalties tied to Missouri’s claim that Kalshi‘s prediction markets amount to an unlicensed sportsbook.
It isn’t open-ended, though. Under the joint stipulation, Missouri’s enforcement pause will remain in effect until the federal court enters a final judgment or dismisses the state’s counterclaims, whichever comes first. A voluntary dismissal of those counterclaims would not end the agreement.
Gaming attorney Daniel Wallach highlighted the unusual nature of the agreement in a post on X, noting that Missouri’s commitment extends beyond the typical duration of such arrangements.
“That’s a highly unusual non-enforcement stipulation,” Wallach wrote. “Typically, such agreements expire upon a (preliminary injunction) ruling.”
Kalshi’s injunction bid remains pending
Kalshi sued Oct. 27 and has since dropped its emergency request for a temporary restraining order. Its bid for a preliminary injunction is still pending before US District Judge Maria Lanahan in St. Louis.
Hanaway’s office has until today (Nov. 11) to oppose the motion. Kalshi can reply by Nov. 16, and a hearing could follow.
The state retained its right to file counterclaims and appeal. The agreement also leaves unresolved the central question of whether Missouri can enforce its gambling laws against Kalshi’s sports contracts.
In September, Hanaway sent cease-and-desist letters to six operators, saying they were offering sports wagering without authorization. Missouri’s licensed sportsbook market has been open since Dec. 1, 2025.
Licensed operators pay a 10% tax on adjusted gross revenue and can’t accept customers under 21. Kalshi’s position is that, as a federally regulated exchange, it answers only to the Commodity Futures Trading Commission.
Other Missouri cases aren’t affected
The pause covers Kalshi; Missouri is still fighting challenges from other prediction market operators. Crypto.com’s exchange and Novig sued in October, and Polymarket, Robinhood and Underdog have since filed their own suits.
Missouri has also asked the court to consolidate Novig’s case with Kalshi’s. The Nov. 10 agreement says nothing about that request, and it doesn’t limit enforcement against those companies.
In a separate Nov. 9 filing, Missouri went further against Novig, asserting counterclaims under the federal Unlawful Internet Gambling Enforcement Act, Missouri’s consumer protection law and public nuisance law. The state is seeking an injunction against Novig’s sports contracts, along with restitution and civil penalties.
Kalshi litigation spans 28 states
Kalshi has plenty of other fights to worry about. A national litigation tracker listed 74 proceedings naming the company across 28 states as of Nov. 7, counting appeals and related proceedings. Sixty-five were still active.
That included 22 brought by states or tribes and 11 private or class-action suits, and Kalshi started another 27 itself against state officials.
Arkansas sued Kalshi on Nov. 4, Utah filed criminal charges and California tribes recently won an injunction against Kalshi’s sports contracts on their lands.
The appeals courts are split. Kalshi won in New Jersey but lost in appeals involving Nevada and Ohio. Missouri’s agreement changes none of that. It only suspends one enforcement threat while the federal court sorts out the main dispute.