Missouri Attorney General Catherine Hanaway is calling for prediction market platforms that offer contracts on Kansas City Chiefs games to be taxed and regulated in the same manner as licensed sportsbooks within the state.

Hanaway's office is currently reviewing platforms such as Kalshi and Robinhood, which offer sports-related event contracts under federal oversight. The Attorney General argues that if these platforms effectively offer sports betting, they should be subject to the same licensing standards and the 10% tax on adjusted gross revenue required of licensed operators overseen by the Missouri Gaming Commission.

Regarding election-related contracts, Hanaway stated that the legality of election betting is a matter for the state legislature to decide. Missouri currently has no legislation governing betting on elections, a situation shared by 32 other states that restrict the activity.

Prediction market operators contend that their offerings are financial products regulated by the Commodity Futures Trading Commission (CFTC) rather than gambling products subject to state law. However, several other states have taken action against such platforms:

• Michigan: Attorney General Dana Nessel secured a preliminary injunction against Kalshi, requiring the use of geofencing to prevent Michigan residents from accessing sports event contracts.
• Nevada: The Ninth Circuit Court of Appeals ruled that Nevada could enforce gambling laws against Kalshi, finding its sports event contracts are likely sports wagers.
• Washington: A judge ordered Kalshi to stop offering most event contracts in the state.
• Massachusetts: A state court found Kalshi's contracts constitute sports wagering under state law.

Additionally, New Jersey has requested the U.S. Supreme Court to decide whether prediction markets should be regulated as financial products or gambling under state law.