Elena Kowalska
Underdog Exchange DCM Inc. and UDM LLC, doing business as Underdog Predict, filed a federal lawsuit against Missouri Attorney General Catherine Hanaway on November 8, 2026, and moved for a preliminary injunction at the same time, court records show.
The suit is captioned Underdog Exchange DCM, Inc. v. Hanaway, No. 2:26-cv-04300, and was filed in the US District Court for the Western District of Missouri.
It adds to a growing pile of litigation over how Missouri treats sports event contracts. Kalshi, Crypto.com's exchange and Novig have already filed their own challenges.
What The Docket Shows
Attorney Edward Dean Greim filed the complaint on November 8 for both plaintiffs.
Among the exhibits are Missouri's cease-and-desist letter to Underdog, dated September 17, 2026, and a letter extending the deadline. Underdog filed its injunction motion the same day, backed by declarations and exhibits.
Three lawyers were granted pro hac vice admission on November 9, and the case was referred to the court's mediation and assessment program. Missouri must respond to the injunction motion by November 23, 2026, absent a different order from the court.
The docket entry does not summarise the claims. In the complaint, Underdog argues that the Commodity Exchange Act gives the Commodity Futures Trading Commission exclusive authority over event contracts traded on designated contract markets, pointing to 7 U.S.C. § 7a-2(c)(5)(C).
The supporting papers also include exhibits whose file labels appear to reference NBA expansion team, MLB and NFL team sale contracts. Those documents were not available to read at the time of writing, so the exact contracts at issue could not be confirmed.
Underdog's Argument
Underdog runs a federally designated contract market and holds registration as a futures commission merchant.
According to the complaint, Missouri officials are asserting jurisdiction without legal basis and trying to shut down its offering of derivative contracts on federally regulated markets.
The defendants named are the attorney general, the executive director of the Missouri Gaming Commission, and the commission's chairman and commissioners.
Preemption is Underdog's argument. No court has ruled on it in this case yet.
Missouri's Position
In September, Hanaway announced cease-and-desist letters to six companies: Polymarket, Kalshi, Crypto.com, Novig, Underdog and Robinhood.
She said in her announcement that sports-event contracts amount to unlicensed sports wagering under Missouri law, and that federal law does not preempt state law here.
Any company offering sports wagering, she said, must hold a Missouri Gaming Commission licence, pay the required taxes and fees, and keep anyone under 21 from placing a bet.
Missouri's sports betting market went live on December 1, 2025, with a 10% tax on gross receipts.
The attorney general's release said the companies either let underage users reach their products or lack adequate safeguards to stop Missourians under 21 from sports wagering.
It warned that noncompliance would draw enforcement action from the state.
What Happens Next
The injunction motion is the first test.
How it comes out will decide whether Underdog can keep offering its contracts in Missouri while the larger preemption question works its way through the courts.
We will update this story when Missouri files its response or the judge sets a hearing.
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