Novig has taken Wisconsin officials to federal court, aiming to prevent the state from using its gambling laws against sports event contracts available through the company’s federally supervised exchange.
Ludlow Exchange LLC, operating as Novig, lodged the case Friday (August 14) in Wisconsin’s Western District federal court. Attorney General Joshua Kaul and Division of Gaming administrator John Dillett are named as defendants in their official roles.
The company says federal commodities law puts these transactions exclusively under Commodity Futures Trading Commission oversight, leaving Wisconsin without authority to regulate them as gambling.
Friday Novig sued Wisconsin to prevent it from apply state gaming laws to the exchange (and keep the legal battle in federal court). Novig has already sued NY, MA, WA, & NM. pic.twitter.com/spPrVuEjY1
— Mick Bransfield (@MickBransfield) August 15, 2026“Wisconsin has moved aggressively against federally regulated event-contract trading within its borders, suing Kalshi, Polymarket, and Crypto.com, and their affiliates, for offering the type of contracts at issue here,” Novig said in its complaint. “Novig, having just secured its status as a Designated Contract Market (‘DCM’) registered by the CFTC, brings this action to prevent Defendants from doing the same to Novig.”
Wisconsin brought civil cases April 23 targeting Kalshi, Polymarket, Crypto.com and affiliated businesses. Novig says those proceedings accuse the companies of commercial gambling and creating a public nuisance.
In a press release quoted in the complaint, the attorney general said: “These companies’ alleged facilitation of sports betting in Wisconsin should be shut down.”
Novig argues federal CFTC oversight overrides Wisconsin gambling laws
Created in 2021, Novig’s parent business set out to build markets around sports events. Ludlow Exchange followed in October 2025 as the company pursued designation as a federally regulated contract market.
The CFTC approved that status June 16, 2026, and Novig says Wisconsin customers gained access to its event contracts last week. The nationwide rollout followed federal approval and expanded a platform that Novig says has handled more than $6 billion in cumulative trading volume.
Similar litigation is already underway elsewhere. Novig filed federal cases against New York, Massachusetts, New Mexico and Washington between August 5 and August 8, arguing in each that federal commodities rules preempt state gambling enforcement.
Wisconsin presents another obstacle. On July 30, U.S. District Judge William C. Griesbach refused the CFTC’s request to temporarily stop Wisconsin’s enforcement campaign against other prediction-market businesses, finding the regulator had not shown it was likely to succeed on the merits.
Novig nevertheless maintains its contracts are federally regulated derivatives qualifying as swaps.
“The event contracts Novig lists are a type of derivative instrument that is extensively regulated under federal law and that can be listed, traded, and settled only on federally registered exchanges,” the company said.
Its safeguards include a 21-year minimum age, binding deposit and trading limits, account freezes lasting from one day through six months, and screening for people with influence over events or material nonpublic information.
With Wisconsin already pursuing other operators, Novig says it faces the same enforcement risk.
“Novig has no option but to seek judicial relief,” the complaint said.
The company wants a declaration that federal law preempts Wisconsin’s challenged gambling provisions for its regulated transactions. It also wants Kaul and Dillett barred from enforcing those provisions against Novig and has requested expedited consideration of a preliminary injunction.
Novig sues Wisconsin officials over sports event contract enforcement ReadWrite.
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