TLDR
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Novig sued Wisconsin Attorney General Josh Kaul and gaming administrator John Dillett over potential action against its sports contracts.
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The prediction market argues its sports contracts fall under federal CFTC oversight rather than Wisconsin gambling laws.
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Wisconsin had already sued Kalshi, Polymarket, Robinhood, Crypto.com and Coinbase over similar sports-related contracts.
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Ludlow Exchange, Novig’s operating subsidiary, received designated contract market status from the CFTC on June 16.
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Wisconsin became the fifth state Novig has sued since August 4, following cases in New York, New Mexico, Massachusetts and Washington.
Prediction market Novig has sued Wisconsin Attorney General Josh Kaul and gaming administrator John Dillett over the state’s treatment of sports event contracts. The company filed the case on Friday, seeking federal court protection before Wisconsin takes possible enforcement action against its platform.
Prediction Market Novig Challenges Wisconsin
Ludlow Exchange LLC, the Novig unit that runs the exchange, filed the 45-page complaint in the U.S. District Court for the Western District of Wisconsin. Novig began offering sports event contracts to Wisconsin customers the previous week.
The company expects possible state action because Wisconsin sued Kalshi, Polymarket, Robinhood, Crypto.com and Coinbase in April. Those cases claim sports event contracts violate state gambling laws and create a public nuisance. Novig was not named in those earlier cases.
Wisconsin officials had not responded to Novig’s complaint at the time of reporting, while Novig, the state Department of Administration and Department of Justice also did not comment immediately.
Novig argues that its sports contracts qualify as swaps under the Commodity Exchange Act. The company says the Commodity Futures Trading Commission has exclusive authority over those products, which would limit Wisconsin’s ability to regulate them under state gambling rules.
The CFTC designated Ludlow Exchange as a designated contract market on June 16. Wisconsin, however, argues that sports outcome contracts remain bets under state law even when a platform holds federal status. A federal judge denied the CFTC’s request for a preliminary injunction in July.
Novig Expands Lawsuits Across Five States
Wisconsin is the fifth state where Novig has sued officials since August 4. The prediction market company also filed cases in New York, New Mexico, Massachusetts and Washington as it expands access to its sports contracts across the United States.
Novig previously operated under a Colorado sports betting license before withdrawing in 2024 and seeking federal market status. The company also requires users to be at least 21 years old and limits its platform to sports-related contracts rather than political, international news, or mention markets.
Novig has also signed an exclusive multiyear partnership with the New York Mets. The deal allows the company to advertise at Citi Field, appear in team broadcasts and use official MLB data. The partnership made the Mets the first Major League Baseball team to work directly with a prediction market platform.
