Connecticut court rejects Novig sports contract arguments
A Connecticut court rejected arguments related to sports contracts in a case involving Novig, a prediction market company that describes itself as a 50-state operation. Separately, Novig has sued the Wisconsin attorney general in a dispute over sports event contracts, according to an industry filing dated June 16. Novig is arguing its position alongside other prediction market operators engaged in state-level fights.
Novig loses a state-court argument on sports contracts just as it opens federal court offensives elsewhere. For a platform pitching itself as 50-state, every state loss forces a hard choice: geofence that market or absorb voiding risk on open contracts. Kalshi, Polymarket, and Novig now face parallel state fights with no uniform standard.
The Wisconsin suit is Novig's attempt to flip the script, asking federal courts to declare CFTC registration a shield against state gambling law. Judge McMahon's denial of immediate relief in the four-state action keeps the patchwork intact. The merits will take months. Traders on Novig contracts face the same geography-dependent validity that already haunts Kalshi's open positions. Smaller platforms without Kalshi's legal budget feel the squeeze fastest.