Novig has initiated legal action against Wisconsin, marking the fifth state where the prediction market operator has filed a lawsuit since launching its sports event contracts nationwide on Aug. 4. The objective is to protect its platform from state sports betting and gambling regulations.

The 45-page federal lawsuit was filed in U.S. District Court for the Western District of Wisconsin against Attorney General Josh Kaul and state gaming administrator John Dillett on Aug. 14.

Novig’s legal entity, Ludlow Exchange LLC, lodged the lawsuit in Wisconsin.

Novig Seeks Expedited Injunction

The company has taken similar preemptive legal actions in New Mexico, Massachusetts, Washington, and more recently, New York (Aug. 4) to prevent these states from enforcing their sports betting laws against Novig.

Novig is seeking an expedited preliminary injunction, highlighting the imminent risk to its business in Wisconsin.

Federal Oversight at Issue

On June 16, Novig secured Designated Contract Market (DCM) status from the Commodity Futures Trading Commission (CFTC). The company now provides a sports-focused prediction market akin to platforms like Polymarket, where users can trade event contracts on a federally registered exchange.

Wisconsin has taken legal action against platforms such as Polymarket, Robinhood, Coinbase, asserting that these companies engage in unlicensed gambling activities.

Novig contends that its federally regulated status enables it to circumvent state gambling laws and regulations.

Numerous Lawsuits Nationwide

Novig is the first in the event contract space to establish a 21+ age requirement, offering real-time trading as games unfold, enhanced liquidity across markets, and diversified payment options.

As of today on Novig (Aug. 18), contract prices indicated a 31% implied probability of the Green Bay Packers defeating the Denver Broncos (70.5%) in their upcoming National Football League preseason match on Friday night (Aug. 21), with market volume surpassing US$29,600.