New York Federal Court Dismisses Preliminary Injunction Motion by Sports Prediction Market Novig

On November 11, pursuant to a ruling by the United States District Court for the Southern District of New York, Ludlow Exchange’s motion for a preliminary injunction to enjoin the State of New York from applying its gambling laws to Novig, a sports prediction market, has been denied.

At the preliminary injunction stage, the court determined that Novig’s sports event contracts do not qualify as swap contracts under the Commodity Exchange Act, and New York State may require them to obtain a state gaming license or prohibit the listing and trading of relevant contracts on their market. The ruling documents indicate that Novig was designated as a contract market by the U.S. Commodity Futures Trading Commission in June 2026, and began offering sports event contracts to New York clients in August.