Novig sues Wisconsin over sports prediction market regulations
The prediction market operator is seeking federal protection from potential enforcement of Wisconsin gambling laws.
US.- Novig has filed a federal lawsuit against Wisconsin seeking to prevent the state from applying its sports betting and gambling laws to the company’s prediction market platform. Ludlow Exchange LLC, Novig’s legal entity, filed the complaint on August 14 in the US District Court for the Western District of Wisconsin, requesting an expedited preliminary injunction.
It argues that potential enforcement by state authorities could pose an existential threat to its business. The defendants are Wisconsin Attorney General Josh Kaul and state gaming administrator John Dillett. Novig is asking the court to recognise its federally regulated status and allow it to offer sports event contracts without complying with state gambling regulations.
Novig launched its sports-focused event contracts nationwide at the beginning of August. The platform allows users to trade contracts tied to sporting event outcomes, including NFL games.
The Wisconsin case is the latest in a series of preemptive lawsuits filed by Novig against states. The company has previously taken similar action in New Mexico, Massachusetts, Washington and New York.
The cases centre on whether federally regulated prediction markets can operate independently of state gambling laws. Novig received Designated Contract Market (DCM) status from the Commodity Futures Trading Commission on June 16. The designation allows the company to operate as a federally registered exchange offering event contracts, which Novig argues prevents states from applying their gambling regulations to its activities.
