Novig loses bid to block New York gambling enforcement

A U.S. federal court denied sports prediction market platform Novig’s request for a preliminary injunction to halt New York state gambling enforcement, The Defiant reported on Nov. 12. In the injunction hearing, the court found it was difficult to recognize the sports event contracts offered by Novig as swaps subject to federal regulation under the Commodity Exchange Act. The court said the contracts were, in substance, illegal sports betting subject to state regulation and recognized New York authorities’ power to enforce the law. The court also said the U.S. CFTC’s policy intervention lacked a strong legal basis, according to The Defiant, referring to the agency’s effort to bring prediction market platforms under the federal derivatives regulatory framework and shield them from state gambling laws.