Enforcement: How hard does the regulator enforce?

Novig, operating as Ludlow Exchange LLC, filed a federal complaint on 16 October 2026 in the U.S. District Court for the Eastern District of Missouri against Attorney General Catherine Hanaway, MGC Executive Director Michael Lear, and MGC Chair Jan Zimmerman, seeking to enjoin enforcement of Missouri's gambling and sports-wagering laws against its sports-event contracts. The suit is the first federal test of whether the Attorney General's enforcement theory, grounded in the licensing requirement under Missouri Constitution Art. III section 39(g) and 11 CSR 45-20.150, can reach CFTC-registered event contracts despite a federal preemption argument. Separately, the Attorney General's 18 September 2026 cease-and-desist letters to six operators, Kalshi, Polymarket, Crypto.com, Novig, Underdog, and Robinhood, carried a thirty-day compliance deadline that lapsed around 16 to 18 October 2026 without confirmed full compliance from all recipients; the individual compliance status of the five operators other than Novig was not established. The underlying licensing requirement is unchanged and stands as the legal basis for the Attorney General's position; what is contested is its application to sports-event contracts specifically.