Novig loses bid to block New York gambling enforcement

Novig has lost its bid for a preliminary injunction against New York gambling enforcement. In a 10 November opinion, US District Judge Colleen McMahon concluded that the sports contracts offered by Ludlow Exchange, doing business as Novig, are not swaps under federal commodities law.

Updated 13 November 2026.

The Southern District of New York judge also rejected Novig’s pre-emption arguments on the alternative assumption that the contracts are swaps. She found that Novig had not established a likelihood of success and did not address the other requirements for preliminary relief.

Novig appeals to the Second Circuit

Ludlow Exchange filed its notice of appeal on 10 November, the same day as the district court’s decision. The filing takes the preliminary injunction denial to the US Court of Appeals for the Second Circuit. The appeal remains a separate proceeding from Kalshi’s and Coinbase’s challenges.

Exchange registration does not settle the contract question

The opinion distinguishes the CFTC’s designation of Novig as an exchange from the legal status of the sports contracts it lists. It rejects the company’s hypothetical examples of commercial hedging as evidence that its customers use the contracts to offset business risks.

The ruling denies interim protection while the underlying case continues. Prediction Frontier has yet to verify a stay or a resulting change to customer access.

The decision is separate from the Second Circuit’s denial of temporary protection for Kalshi and Coinbase earlier this month. Those appeals concern other operators and remain pending. Novig is also contesting enforcement in Missouri, where the state has counterclaimed against its exchange and asked for restrictions on payments connected to alleged unlawful gambling.