Novig must now face New York’s gambling rules after a federal judge rejected its effort to keep state regulators away from its sports event contracts, leaving licensing or a ban as possible outcomes.
U.S. District Judge Colleen McMahon refused to temporarily shield Novig from New York’s gambling law, denying its request for a preliminary injunction. She found the sports event contracts do not qualify as swaps under the Commodity Exchange Act.
Novig argued that the Commodity Futures Trading Commission (CFTC) has sole authority over event contracts under federal law and that this blocks state regulation. The ruling leaves New York free to require a gambling license or stop Novig from offering the contracts.
Missouri’s Nov. 9 counterclaim cites the 2006 Unlawful Internet Gambling Enforcement Act, argues that wagers without Gaming Commission approval violate state law and asks the court to stop Novig from accepting payments from state residents.
The case is part of Missouri’s wider dispute with prediction-market operators; earlier EconoTimes coverage of the Novig counterclaim and a separate Polymarket US suit described the parallel filings.
