Novig sues New York claiming federal law shields sports prediction markets
A federally regulated prediction market operator is asking a federal judge to block New York from enforcing state gambling laws… Continue reading Novig sues New York claiming federal law shields sports prediction markets The post Novig sues New York claiming federal law shields sports prediction markets appeared first on ReadWrite .
Ludlow Exchange LLC, operating as Novig, has filed a lawsuit against the state of New York, arguing that federal law grants the Commodity Futures Trading Commission (CFTC) exclusive authority over sports event contracts. The company contends that New York's state gambling laws are unconstitutional when applied to these contracts, which are federally regulated derivatives.
Novig recently received CFTC designation, allowing it to offer nationwide sports prediction markets under federal oversight, rather than navigating state-by-state licensing. The lawsuit alleges that New York has already targeted similar products, such as Kalshi and Coinbase Financial Markets Inc., with enforcement actions. Novig claims its exchange offers users greater liquidity, live trading, and additional compliance safeguards, as well as deposit limits, self-exclusion tools, and measures to prevent prohibited trader participation.
The company seeks a court injunction declaring federal law's preemption of New York's gambling laws, emphasizing the critical need to avoid substantial civil or criminal liability.
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