Prediction market operator Novig has filed a federal lawsuit against Wisconsin, which has not become the fifth state to face legal action from the company seeking protection from potential enforcement of sports betting laws.
Preemptive Step
Novig’s legal entity, Ludlow Exchange LLC, filed the 45-page lawsuit on August 14 in the US District Court for the Western District of Wisconsin. The defendants are Wisconsin Attorney General Josh Kaul and state gaming administrator John Dillett.
The company is looking to stop Wisconsin from applying its sports betting and gambling laws against its platform, arguing that it has the federally regulated status that let it provide sports event contracts without having to comply with state gambling regulations.
Novig officially launched its sports-focused event contracts nationwide at the start of the month, allowing users to trade contracts based on the outcomes of sporting events, including NFL games.
Novig Seeks Injunction
The Wisconsin lawsuit is part of a broader legal campaign by Novig, which has already filed similar preemptive lawsuits in New Mexico, Massachusetts, Washington and New York.
In Wisconsin, Novig has requested an expedited preliminary injunction, arguing that possible state enforcement represents an existential threat to its business.
The dispute centers largely on whether federally regulated prediction markets can operate independently of individual states’ gambling regulations.
CFTC Status at Center of Dispute
Novig received Designated Contract Market (DCM) status from the Commodity Futures Trading Commission on June 16.
The designation allows it to function as a federally registered exchange offering event contracts, which, the company claims, means that states cannot apply their gambling laws to its activities.
The issue has become increasingly contentious as prediction markets expand into sports.
Wisconsin has already legally acted against other prediction operators and platforms, including Polymarket, Robinhood, and Coinbase, saying their activities represent unlicensed gambling according to state law.
Novig’s lawsuit therefore adds another front to the growing legal battle over whether sports prediction markets should be regulated primarily at the federal or state level.
Novig describes itself as the first event contract platform to introduce a 21+ age requirement, while also offering instant live trading during games, deeper liquidity and additional payment options.
The platform is already attracting activity around major US sports. As of August 18, Novig contracts gave the Green Bay Packers a 31% implied chance of beating the Denver Broncos in their NFL preseason game scheduled for August 21.
The Denver Broncos were priced at a 70.5% implied probability, while trading volume on the market had surpassed $29,600.
