Novig prediction market cases paused in Massachusetts and New Mexico
Federal proceedings involving Novig have been put on hold while the operator and New Mexico officials have requested a similar stay.
US.- A federal judge has granted a joint request from Novig and Massachusetts officials to pause litigation over the operator’s prediction market activities in the state. US District Judge F. Dennis Saylor IV approved the motion, staying the case until the Massachusetts Supreme Judicial Court rules on Kalshi’s appeal against a preliminary injunction against its sports event contracts in the state.
The agreement prevents Massachusetts from bringing or continuing civil or criminal enforcement action against Novig over its sports-related event contracts until at least 14 days after the stay ends. Novig and state officials argued that the Kalshi appeal raises similar legal questions and that waiting for the ruling would avoid duplicative litigation.
The court also removed officials from the Massachusetts Gaming Commission named in Novig’s lawsuit without prejudice. Attorney General Andrea Joy Campbell remains the only defendant in the case.
Novig seeks separate stay in New Mexico
Novig and New Mexico officials have also jointly requested a stay in a separate federal lawsuit. The parties asked the court to stay proceedings until August 13, 2027. The proposed stay is linked to litigation between the Commodity Futures Trading Commission (CFTC) and New Mexico.
Novig has filed lawsuits against regulators in New York, Massachusetts, Washington, New Mexico and Wisconsin, arguing that the Commodity Exchange Act gives the CFTC exclusive jurisdiction over its federally regulated event contracts. Novig maintains that federal law therefore preempts state gambling regulations. In New York, however, a federal judge denied the company’s request for a temporary restraining order.
