New York can block Novig’s sports contracts, judge rules
A federal judge ruled New York can apply its gambling laws to Novig’s sports event contracts.
The hit
A federal judge in New York has ruled against Novig, the sports-contract exchange that sued the state to stop officials treating its products as gambling. US District Judge McMahon denied Novig’s request for a preliminary injunction, finding its sports-related contracts are not “swaps” under the Commodity Exchange Act, according to the court filing.
Why it matters
New York can now require Novig to hold a state gambling licence or stop listing its sports contracts there. According to the court filing, New York has recently invoked its gambling laws to try to shut down other businesses offering similar sports event contracts.
The record
| CFTC designation | Novig named a designated contract market by the CFTC, June 2026 |
|---|---|
| New York launch | Novig began offering sports event contracts to New York customers, August 2026 |
| Lawsuit filed | Novig sued New York attorney general Letitia James & the gaming commission’s executive director, chair & commissioners in their official capacities, case 1:26-cv-06676 (S.D.N.Y.) |
| Ruling | Judge McMahon denied Novig’s preliminary injunction motion, 10 November 2026 |
What happens next
Watch for Novig’s next move in the case, including any appeal, & whether New York’s gaming commission moves to enforce its licensing rules against the exchange.
Sources: Ludlow Exchange, LLC v. James, Memorandum & Opinion (S.D.N.Y.)
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