Sports prediction market operator Novig has filed a federal lawsuit against Wisconsin Attorney General Josh Kaul and state gaming administrator John Dillett in an effort to prevent enforcement action over its sports-related events contracts.
Following the platform’s recent launch in Wisconsin, Novig’s exchange subsidiary, Ludlow Exchange LLC, filed a 45-page complaint on Friday in the US District Court for the Western District of Wisconsin.
The operator argues that its products are financial contracts governed by the Commodity Exchange Act, placing them under the authority of the Commodity Futures Trading Commission (CFTC).
The state takes the opposing position, claiming that contracts based on sporting outcomes are effectively wagers and should therefore fall under state gambling regulations.
