Ludlow Exchange filed a federal suit last week against Wisconsin Attorney General Josh Kaul and gaming administrator John Dillett, seeking an injunction to keep Novig operating in the state.
The company argues Novig’s paid sports event contracts are federally regulated derivatives, not gambling, and says the Commodity Futures Trading Commission has exclusive jurisdiction that preempts Wisconsin law.
Kaul sued Kalshi and Polymarket earlier this year, calling their contracts illegal sports betting and saying "thinly disguising unlawful conduct" does not make it lawful; that case has since moved to federal court.
The CFTC has separately asked a federal judge to permanently block Kaul’s lawsuit under the Supremacy Clause, setting up a broader test of whether states can police prediction markets like sportsbooks.
Wisconsin allows tribal sportsbooks under gaming compacts, and a new state law permits mobile betting if servers sit on tribal land, sharpening the clash over where prediction markets fit.