Novig has taken legal action by filing a complaint in the Eastern District of Missouri through its exchange operator, Ludlow Exchange.

The company is requesting both preliminary and permanent injunctions against various state officials, including members of the Missouri Gaming Commission. In its complaint, Novig contends that Missouri is improperly trying to impose state gambling and sports wagering laws on transactions that are meant to be governed by federal law.

The company describes its products as swaps under the Commodity Exchange Act, which, according to them, fall squarely under the jurisdiction of the CFTC. Additionally, Novig has requested that the court maintain the status quo while the Eighth Circuit Court of Appeals deliberates on a related issue involving Kalshi and Iowa.

This appeals court oversees Missouri but has yet to reach a decision on the significant question of whether federal regulations take precedence over state gambling laws in the context of sports event contracts. Furthermore, the filing creates an additional barrier to the state’s proposed licensing framework.

Novig points out that the Missouri constitution only allows for two direct mobile sports wagering licenses, both of which have already been issued. This limitation, according to the company, renders the pursuit of a conventional sports betting license unfeasible for its operations.