Novig Files Lawsuit Against Wisconsin Over Sports Contracts

Novig is expanding its legal fight over sports contracts into America’s Dairyland.

The operator has filed a preemptive lawsuit against Wisconsin after launching its sports prediction platform in the Midwestern market. It argues that these markets are protected under the Commodity Exchange Act, which gives the Commodity Futures Trading Commission sole regulatory authority over the prediction industry. As a result, prediction operators like Novig can ignore state gambling laws.

Novig's lawsuit assumes Wisconsin will ask the court for a preliminary injunction to shut the platform down. The hope is that by filing first, the court will reject the state’s request, allowing the platform to remain available.

With the new lawsuit, Novig is now engaged in similar lawsuits in the following US markets:

• Massachusetts

• New Mexico

• New York

• Washington

• Wisconsin

Unlike prediction-only industry giants like Kalshi and Polymarket, Novig offers only sports markets. That makes its legal fight to protect the controversial offering even more important, driving its aggressive legal strategy as Novig continues to expand across the US.

Wisconsin’s sports betting market currently allows for retail sports betting, and will soon expand to include online betting.

Novig Faces Uphill Battle

While Novig beat Wisconsin to court, that doesn’t mean it will win.

Over the last few months, rulings on sports prediction markets have been going against the industry. While judges are accepting that the offering is a form of “swaps,” they are finding that doesn’t allow the industry to preempt state gambling laws. This includes cases where operators file preemptive lawsuits like the one in Wisconsin.

With several courts delivering similar rulings recently, operators like Novig have reason to worry. Without non-sports markets, the operator would be forced to follow local sports betting laws. This includes state taxes, regulations, and purchasing an operating license.

Like most prediction market platforms, Novig’s ability to avoid the designation of gambling allows it to offer lower costs than regulated sportsbooks. That advantage would disappear if the operator were forced to enter the regulated market, where it would struggle to compete with long-established sportsbooks.