US judge rejects Novig bid to shield sports contracts from New York gambling law
US District Judge Colleen McMahon denied Novig's request for a preliminary injunction against New York's attorney general and gaming regulators, ruling that its sports contracts are bets subject to state gambling law rather than protected financial swaps. The decision leaves New York able to pursue enforcement but does not itself require Novig to close; Novig had argued that the Commodity Exchange Act pre-empts state action.
The ruling leaves Novig facing a choice between seeking a New York gambling licence and stopping operations there.