Novig Takes on Five States at Once in Fight to Keep Sports Prediction Markets Open – CoinCentral

TLDR

• Novig filed a federal lawsuit against Wisconsin’s Attorney General and gaming administrator on Aug. 14
• The company argues its sports contracts are federally regulated derivatives under the Commodity Exchange Act
• Wisconsin previously sued Kalshi, Polymarket, Robinhood, Crypto.com, and Coinbase in April over similar contracts
• A federal judge denied the CFTC’s preliminary injunction against Wisconsin enforcement in July
• Wisconsin is the fifth state Novig has sued since August 4

Prediction market platform Novig has filed a federal lawsuit against Wisconsin officials, seeking to block the state from applying its gambling laws to sports event contracts traded on its exchange.

JUST IN: Novig sues Wisconsin, arguing sports contracts are swaps and should fall under the CFTC’s exclusive jurisdiction. If upheld, this could sharpen regulatory focus on prediction markets $NOVIG pic.twitter.com/znnsWmNd8U

— Bpay News (@bpaynews) August 17, 2026

The company filed the 45-page complaint on August 14 in the U.S. District Court for the Western District of Wisconsin. Novig is asking for preliminary and permanent injunctions, as well as a declaration that federal law takes precedence over Wisconsin statutes.

Novig’s operating subsidiary, Ludlow Exchange LLC, was designated as a contract market by the Commodity Futures Trading Commission on June 16. The company began offering event contracts to Wisconsin residents about one week before filing the lawsuit.

Novig’s Legal Argument

Novig argues that its sports contracts are federally regulated derivatives under the Commodity Exchange Act. The company says this places them under the CFTC’s exclusive jurisdiction, overriding state gambling laws.

This is Novig’s legal position and has not been ruled on by the Wisconsin court. The company is seeking expedited consideration, claiming that the threat of state enforcement poses risks it describes as “imminent and existential” to its business.

Novig also sets itself apart from other prediction market operators. It offers only sports-related contracts, not event contracts tied to international news or political outcomes. It also requires users to be at least 21 years old.

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A Difficult Legal Backdrop

Novig enters Wisconsin facing an unfavorable legal backdrop. Wisconsin sued Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase in April, alleging their sports event contracts violated the state’s commercial gambling ban and created a public nuisance.

The CFTC later sued Wisconsin and asked a federal judge to block state enforcement. Judge William Griesbach denied that request on July 28. He found the CFTC had not shown a likelihood of success on its preemption claim. That ruling was not a final judgment.

The underlying dispute between federal and state authority over prediction markets remains unsettled nationally.

Wisconsin is the fifth state Novig has targeted since August 4. The company has also sued officials in New York, Massachusetts, Washington, and New Mexico as it expands its exchange across the country.

Novig has also been growing commercially. On July 30, it announced a multiyear partnership with the New York Mets, making it the club’s exclusive official prediction market partner. The deal includes Citi Field and broadcast advertising rights, along with access to official MLB data.

As of the most recent publicly available filings, Wisconsin officials had not yet filed a substantive response and the court had not ruled on the injunction request.