Novig Gets Massachusetts Stay, Seeks Same in New Mexico
Novig is moving to pause two of its five state-regulator lawsuits while other prediction market cases play out.
A federal judge granted Novig and Massachusetts’ request to put their prediction market litigation on hold, as the operator and New Mexico officials separately asked for a similar halt in proceedings.
U.S. District Judge F. Dennis Saylor IV granted a joint motion from Novig and Massachusetts officials on Aug. 25. The case is now stayed until the Massachusetts Supreme Judicial Court rules on Kalshi’s appeal of a preliminary injunction barring it from offering sports event contracts without a state license. The court heard arguments in May.
The agreement also prevents Massachusetts from initiating or maintaining civil or criminal enforcement against Novig over its sports-related event contracts until at least 14 days after the stay ends.
Novig and Massachusetts had argued that Kalshi’s appeal presents legal questions similar to those raised by Novig and that waiting for its resolution would “promote judicial economy and limit duplicative litigation.”
The court also dismissed Massachusetts Gaming Commission officials named in the lawsuit without prejudice. That left Attorney General Andrea Joy Campbell as the remaining defendant.
Novig, New Mexico Seek Stay Until August 2027
Novig and New Mexico officials are also seeking a stay, although for a different reason.
The parties jointly moved on Aug. 25 to stay the operator’s federal lawsuit until Aug. 13, 2027. The New Mexico agreement is tied to the outcome of the Commodity Futures Trading Commission (CFTC) lawsuit against the state.
The CFTC sued New Mexico in June, seeking to prevent officials from enforcing the state’s gambling laws against federally regulated prediction markets. New Mexico previously sued Kalshi.
Briefing has concluded on the CFTC’s preliminary injunction request and New Mexico’s motion to dismiss. Novig and the state said a ruling in that case could address the federal preemption question at the center of Novig’s challenge.
Under the proposed agreement, New Mexico officials would not pursue enforcement actions against the operator. The parties would submit statements by July 30, 2027, addressing whether the stay should be lifted or extended, while the court could end or extend it earlier.
Prediction Market Cases Increasingly Put on Hold
The developments come as Novig filed lawsuits against regulators in five states shortly after launching its prediction market platform.
The company has sued New York, Massachusetts, Washington, New Mexico and Wisconsin. Novig argues that the Commodity Exchange Act gives the CFTC exclusive jurisdiction over its federally regulated event contracts and preempts state gambling laws. In New York, a federal judge denied the company’s request for a temporary restraining order.
Novig’s pause in Massachusetts and potentially in New Mexico arrives amid an increase in case pauses across broader prediction market litigation.
In Massachusetts, Polymarket reached a similar agreement with officials in March. A federal judge stayed Polymarket’s lawsuit until the resolution of Kalshi’s case. Massachusetts agreed not to enforce its sports betting laws against Polymarket while the case remains paused.
Last week, Crypto.com and Washington officials agreed to pause their federal dispute while the Ninth Circuit considers consolidated cases in Nevada. Washington also agreed not to enforce its gambling laws against Crypto.com while those appeals remain pending.
That same Ninth Circuit decision is also being awaited in Arizona, where related litigation has been stayed pending the appeals. Elsewhere, Coinbase agreed to a stay in its cases against Michigan and Connecticut last week while courts await rulings in related disputes.
The growing number of stays is concentrating the broader prediction market legal fight around a smaller group of potentially consequential cases.
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