Novig Sues Wisconsin AG to Block Gambling Enforcement Over $500 Billion Prediction Market
Updated
Updated · WPR · Aug 20
Novig Sues Wisconsin AG to Block Gambling Enforcement Over $500 Billion Prediction Market
3 articles · Updated · WPR · Aug 20
Summary
Novig filed a federal lawsuit Friday seeking to bar Wisconsin Attorney General Josh Kaul from enforcing state gambling laws against its event-contract business in the state.
The $500 billion company argues those contracts are federally regulated financial instruments and that Congress gave the CFTC exclusive jurisdiction, preempting Wisconsin law "several times over."
Novig says the risk is existential: fighting state action could bring unrecoverable losses because of Wisconsin sovereign immunity, while staying out of Wisconsin would cost market share and revenue in a competitive market.
Kaul's office pointed to his April stance that prediction markets are "thinly disguising unlawful conduct"; Wisconsin has already sued Kalshi, Robinhood, Coinbase, Polymarket and Crypto.com over what it calls illegal online sports betting.
The case fits a broader strategy by Novig, which has also sued attorneys general in Massachusetts and New York as states test whether federally listed prediction contracts can bypass gambling bans.