Novig sues Wisconsin officials over sports event contract enforcement

Novig has sued Wisconsin Attorney General Josh Kaul and state gaming administrator John Dillett, asking a federal court to block the state from treating its sports event contracts as illegal gambling.

The complaint, filed by Novig’s operating entity Ludlow Exchange LLC in the U.S. District Court for the Western District of Wisconsin, argues that Novig’s sports contracts are swaps regulated exclusively by the Commodity Futures Trading Commission, not bets subject to state gambling law.

The 45-page lawsuit is a preemptive strike. Novig says it began offering event contracts to Wisconsin residents just over a week ago and moved to sue before the state could bring its own enforcement action, pointing to Wisconsin’s history of going after other prediction-market operators over nearly identical contracts.

Wisconsin opened its offensive against sports-linked prediction markets in April, suing Kalshi, Polymarket, Robinhood, Crypto.com and Coinbase over event contracts tied to sporting outcomes. The state alleges those contracts violate its commercial gambling statutes and amount to a public nuisance, regardless of how the operators are federally licensed.

Novig is now the sixth operator to become entangled in Wisconsin’s push, and it’s asking the court to move quickly with an expedited preliminary injunction rather than wait to see how the state responds to its recent Wisconsin launch.

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