Novig Sues Wisconsin in Fifth State Challenge Over Sports Event Contracts
Novig has filed a lawsuit against Wisconsin, the fifth state the prediction market operator has sued since launching its sports event contracts nationally on Aug. 4, seeking to shield its platform from state sports betting and gambling regulations. The 45-page federal lawsuit was filed in U.S. Dist…
Novig has filed a lawsuit against Wisconsin, the fifth state the prediction market operator has sued since launching its sports event contracts nationally on Aug. 4, seeking to shield its platform from state sports betting and gambling regulations. Tyrod Taylor of the Green Bay Packers looks to pass during a preseason game Aug. 13. Sports-focused prediction market platform company Novig, offering markets like the NFL, is suing Wisconsin. (Image: Joe Sargent/Getty Images) The 45-page federal lawsuit was filed in U.S. District Court for the Western District of Wisconsin against Attorney General Josh Kaul and state gaming administrator John Dillett on Aug. 14. Novig’s legal entity, Ludlow Exchange LLC, filed the lawsuit in Wisconsin. Novig Seeks Expedited Injunction The company has also filed similar pre-emptive lawsuits in New Mexico, Massachusetts, Washington, and, more recently, New York (Aug. 4) to block those states from enforcing their sports betting laws against the company. The platform has sought an expedited preliminary injunction, citing an existential business threat posed by potential enforcement in Wisconsin. Federal Oversight at Issue Novig was granted Designated Contract Market (DCM) status by the Commodity Futures Trading Commission (CFTC) on June 16. The company now offers a sports-focused prediction market similar to platforms like Polymarket, where users can trade event contracts on a federally registered exchange. Wisconsin has filed lawsuits against Polymarket, Robinhood, Coinbase and other prediction market platforms, arguing those companies constitute unlicensed gambling. Novig believes its federally regulated status allows it to bypass state gambling laws and regulations. Numerous Lawsuits Nationwide The company is the first in the event contract space to have a 21+ age requirement, offering instant live trading as games unfold, deeper liquidity across markets, and expanded payment options. On the Wisconsin sports front, today on Novig (Aug. 18), contract prices gave the Green Bay Packers a 31% implied chance of beating the Denver Broncos (70.5%) in their National Football League preseason game Friday night (Aug. 21), with market volume topping US$29,600. The post Novig Sues Wisconsin in Fifth State Challenge Over Sports Event Contracts appeared first on Casino.org.