Novig sues Wisconsin over sports prediction contracts

Prediction market operator Novig has sued Wisconsin Attorney General Josh Kaul and state gaming administrator John Dillett, seeking to stop Wisconsin from applying its gambling laws to sports event contracts traded on the company’s federally regulated exchange. Summary Novig sued Wisconsin officials seeking to block state gambling laws from reaching its sports contracts. CFTC designated Ludlow Exchange as a contract market on June 16, enabling federally regulated trading. Novig began offering event contracts to Wisconsin customers roughly one week before filing its lawsuit. A Wisconsin federal judge previously denied the CFTC preliminary relief against the state’s enforcement campaign. Wisconsin is the fifth state Novig has sued since August 4 over prediction market regulation. Ludlow Exchange LLC, which operates as Novig, filed the 45-page complaint on Aug. 14 in the U.S. District Court for the Western District of Wisconsin. Novig wants preliminary and permanent injunctions and a declaration that federal commodities law preempts the Wisconsin statutes when applied to its event contracts. Novig argues CFTC oversight overrides Wisconsin law Novig’s case rests on the Commodity Exchan...