Novig Pauses Its Massachusetts and New Mexico Lawsuits

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Quick Glance at the Facts

  • A federal judge stayed Novig’s Massachusetts prediction market lawsuit on Aug. 25, 2026, and the company is seeking a similar pause in New Mexico until Aug. 13, 2027.
  • The Massachusetts pause holds until the state’s Supreme Judicial Court rules on Kalshi’s appeal, and neither state can enforce its gambling laws against Novig while the cases sit on hold.
  • Novig runs a federally regulated sports prediction market, not a licensed online casino, offshore casino, or sweepstakes casino.

Novig has paused its federal lawsuit against Massachusetts and asked a court to freeze its New Mexico case, putting two of its five state fights on hold while bigger prediction market cases play out. The pauses matter because they decide, for now, whether Novig’s sports event contracts keep running in these states without state enforcement getting in the way.

What the Court Ordered in Massachusetts

U.S. District Judge F. Dennis Saylor IV granted a joint motion from Novig and Massachusetts officials on Aug. 25, 2026, according to the federal court docket in Ludlow Exchange, LLC v. Campbell (No. 1:26-cv-13615, D. Mass.). The case is stayed until the Massachusetts Supreme Judicial Court rules on Kalshi’s appeal of a preliminary injunction that bars Kalshi from offering sports event contracts without a state license. That appeal, Commonwealth v. KalshiEX LLC, was argued in May 2026.

The deal also blocks Massachusetts from starting or keeping up any civil or criminal enforcement against Novig over its sports event contracts until at least 14 days after the stay ends, Gambling Insider reported on Aug. 26, 2026. The court dropped the Massachusetts Gaming Commission officials named in the suit without prejudice, which leaves Attorney General Andrea Joy Campbell as the only remaining defendant.

Novig is a federally regulated sports prediction market. Its legal entity, Ludlow Exchange, LLC, got Designated Contract Market status from the CFTC on June 16, 2026, and the platform launched nationwide on Aug. 4, 2026.

Why New Mexico Would Wait Until 2027

Gambling Insider reported that Novig and New Mexico officials jointly asked on Aug. 25, 2026 to stay Novig’s federal lawsuit there until Aug. 13, 2027. That request is tied to a separate case: the CFTC sued New Mexico in June 2026 to stop the state from enforcing its gambling laws against federally regulated prediction markets, and New Mexico had already sued Kalshi.

Briefing has wrapped on the CFTC’s preliminary injunction request and New Mexico’s motion to dismiss. Both sides expect that ruling to settle the federal preemption question at the core of Novig’s case. Under the proposed agreement, New Mexico would hold off on enforcement against Novig during the pause, and the parties would file statements by July 30, 2027 on whether to lift or extend the stay.

How This Impacts Players

For anyone using Novig in Massachusetts or New Mexico, the sports event contracts keep running for now, since both states have agreed not to enforce their gambling laws against the platform while the cases sit on hold. Nothing here changes casino access. Massachusetts still has no licensed online casino.

State lawmakers voted 11-0 to send the iGaming bill H.4431 to study on March 16, 2026, ending online casino hopes for the year, SportsLine reported.

Residents who want real-money casino games rely on offshore casinos and sweepstakes casinos, which are separate from Novig’s sports prediction market. Novig’s five-state campaign leans on one argument: the Commodity Exchange Act gives the CFTC exclusive jurisdiction over its event contracts and preempts state gambling law. That argument has not won everywhere, and the same reporting notes a New York federal judge denied Novig’s request for a temporary restraining order.

GamblingNerd Take

These pauses are a stalling play, not a win. Novig gets to keep taking sports event contracts in Massachusetts and New Mexico while it waits for the Kalshi appeal and the CFTC’s New Mexico case to answer the preemption question for it. If you trade on Novig in either state, check the status of the Massachusetts Supreme Judicial Court ruling before you assume access is permanent, because the stay ends when that opinion lands.

(Photo by B. Kane)

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About the Author

Isaac E. Payne is an experienced technical blogger, creative writer, and lead content manager at GamblingNerd.com. As a published author, he enjoys finding interesting and exciting ways to cover any topic. In his four years on the team, he has covered online gambling and sports betting and excelled at reviewing casino sites. In his free time, he enjoys playing blackjack and reading science fiction.