Prediction market platform Novig has secured a stay in two of its five state-regulator lawsuits. A federal judge granted the joint motion from Novig and Massachusetts authorities on 25 August, while the company is seeking a pause with New Mexico until August 2027.
The Massachusetts case is on hold pending a state Supreme Court ruling on Kalshi's appeal. Kalshi is challenging a ban on offering contracts tied to sporting events without a licence; hearings took place in May. Massachusetts authorities committed not to bring enforcement action against Novig for at least 14 days after the stay is lifted. Both sides cited identical legal questions and the need to avoid duplicative proceedings.
In New Mexico the reason is different. The state is awaiting the outcome of a Commodity Futures Trading Commission (CFTC) lawsuit filed in June that seeks to block the application of local anti-gambling laws to federally regulated prediction markets. Novig and the state agreed to freeze proceedings until 13 August 2027, with no enforcement action during that period. The parties will report on 30 July 2027 whether the stay should be extended or lifted.
Novig launched its platform and immediately sued five states — New York, Massachusetts, Washington, New Mexico and Wisconsin — arguing that the federal Commodity Exchange Act gives the CFTC exclusive jurisdiction and pre-empts state gambling laws. A New York judge denied the operator's request for an emergency restraining order against the regulator.
Stays are becoming common across the prediction market sector. Polymarket reached agreement with Massachusetts in March, Crypto.com with Washington last week, and Coinbase has frozen disputes with Michigan and Connecticut. The legal fight for the prediction market is now concentrating around a few key precedents.
