Novig has joined the legal battle over prediction markets in New York, filing a lawsuit against the state’s authorities. The action comes as the company launches its sports trading platform nationwide.
With New York aggressively targeting Kalshi and other prediction market operators, Novig is preempting any similar action against the company. The lawsuit seeks formal recognition that New York’s gambling laws are preempted by the Commodity Exchange Act (CEA), which governs prediction markets.
Novig argues that without this relief, it faces “irreparable harm in multiple ways,” including New York attempting to pursue enforcement action against the company.
The state ramped up its fight with Kalshi last week, filing a lawsuit against the company seeking $36 billion in damages.
Novig Launches Nationwide
Novig filed the lawsuit in federal court in New York just a day after announcing the nationwide launch of its CFTC-regulated platform.
The company describes itself as the “leading sports prediction market,” which is “Designed by sports traders for sports traders.”
“For too long, sports fans have had limited ways to engage with the markets they know best. They are among the most passionate and informed communities in the world, yet they’ve never had a platform truly built around how they think, engage, and trade,” said Jacob Fortinsky, co-founder and CEO of Novig in a press release.
“We built Novig to change that, not only by creating the best place to trade sports, but by setting the standard for what a modern sports prediction market should be.”
Platform Sets Age Limit at 21
Unlike Kalshi and most other prediction market platforms, Novig is only available to users over the age of 21. The company says this reflects its “commitment to building a responsible platform as it scales.”
Fortinsky added that the company is “investing in the compliance, market surveillance, and safeguards needed to scale responsibly.”
One of the main points in New York’s action against Kalshi is that it allows users aged 18 to 20 years old to trade on the platform. This week, it also issued a subpoena to the company, seeking details of transactions involving sports-event contracts and persons under 21.
New York issues document subpoenas to Kalshi seeking details of transactions involving sports-event contracts and persons “under the age of 21.” Subpoenas do not seek details of any other category of event contracts, just sports. First government subpoena directed at Kalshi. https://t.co/ywO8C9oywL
— Daniel Wallach (@WALLACHLEGAL) August 6, 2026
Kalshi quickly moved the civil enforcement action to federal court, and Novig’s lawsuit similarly seeks to fight its legal battle in federal courts. States have had favorable judgments against prediction markets when the cases have been heard in state courts.
Novig Bets on New York With Mets Deal
Novig originally launched as a sports betting operator in Colorado before later changing to a sweepstakes model to reach a larger audience. The company pivoted to the current prediction market model last year as the industry expanded.
While applying for its CFTC license as a Designated Contract Maker (DCM), it closed a $75 million funding round in February.
As it prepared for its launch, it also signed a deal with the New York Mets, becoming the first official prediction market partner of an MLB franchise. The deal highlights the importance of maintaining legal status in New York.
In a press release, the Mets said that, “The partnership underscores the Mets’ ongoing investment in fan engagement and the club’s ability to attract category-leading partners looking to connect with one of baseball’s largest and most passionate fan bases.”
As part of the deal, Novig will prominently display its brand at Citi Field. The partnership follows Novig’s recognition as an MLB Authorized Prediction Market, which allows the company to collaborate with MLB clubs and leverage official league data.
Prediction Market Users More Likely to Win, Claims Novig
Fortinsky said the prediction market model means “Novig users are up to 10x more likely to win in the long-run than on traditional sportsbooks.”
In a report earlier this year, Citizens Equity Research analyst Jordan Bender challenged that idea, citing data that showed “median return on investment (ROI) for a prediction market user was -8%”. This is considerably less than the -5% return for a sportsbook user.
