On the same day it unveiled its sports-centric prediction market nationwide (August 4), Novig initiated a lawsuit in federal court aimed at temporarily preventing New York from applying its sports betting regulations against the company.
On June 16, Novig received Designated Contract Market (DCM) approval from the Commodity Futures Trading Commission (CFTC), enabling the company to launch a sports prediction market akin to platforms like Polymarket and ProphetX, which facilitate trading of event contracts on a federally recognized exchange.
Novig Challenges New York’s Regulations
Specifically, on August 4, Ludlow Exchange LLC—the legal entity established by Novig co-founders Jacob Fortinsky and Kelechi Ukah for its federally regulated operations—filed a lawsuit against New York Attorney General Letitia James and the New York State Gaming Commission, requesting a preliminary injunction against the state’s enforcement.
Novig contends that its federally regulated status permits it to circumvent state gambling laws and regulations, similar to other CFTC-regulated prediction markets.
This court action aims to take a proactive stance as Novig launches its new venture amid ongoing legal discussions about the ability of states like New York to regulate federally recognized sports prediction markets overseen by the CFTC.
Federal Designation as a Key Argument
Novig’s lawsuit is a significant development in a growing legal conflict nationwide.
New York has aggressively pursued enforcement against prediction market operators, arguing that their products fall under unlicensed gambling.
On the launch day, August 4, Fortinsky expressed: “Sports enthusiasts have long been limited in their options to engage with the market they know best. They form one of the most passionate and knowledgeable communities globally, yet they have yet to find a platform truly crafted around their insights, engagement, and trading styles.
Launch of Sports-Centric Prediction Market
“Our mission with Novig is to change this narrative by not only providing the ultimate space to engage with sports trading but also by establishing a benchmark for modern sports prediction markets.”
Uniquely, Novig imposes a minimum age limit of 21, making it the only prediction market with a higher age requirement.
This morning, market activity on Novig’s homepage featured tonight’s matchup between Bruno Lopes and Diyar Nurgozhay at UFC Fight Night in Las Vegas, with contract prices indicating a 61.5% implied probability of victory for Nurgozhay compared to Lopes’ 39.5%, and a market volume exceeding $111,280.