Prediction market operator Novig has sued Wisconsin Attorney General Josh Kaul and gaming administrator John Dillett, arguing that sports-event contracts listed on its federally regulated exchange are derivatives covered by the Commodity Exchange Act and therefore fall within federal, not state, jurisdiction. The Aug. 14 lawsuit, filed by Ludlow Exchange LLC in the U.S. District Court for the Western District of Wisconsin, seeks preliminary and permanent injunctions and a declaration that Wisconsin's gambling laws are preempted when applied to Novig's contracts. The case follows the CFTC's June 16 designation of Ludlow as a designated contract market and came about a week after Novig began offering the contracts to Wisconsin residents, but it also arrives after Judge William Griesbach on July 28 refused to grant the CFTC similar preliminary relief against Wisconsin's enforcement campaign. Wisconsin had already sued Kalshi, Polymarket, Crypto.com, Robinhood and Coinbase in April over sports event contracts, and Novig says the threat of similar enforcement poses imminent and existential risks to its business. The filing is Novig's fifth state lawsuit since Aug. 4, after actions in New York, Massachusetts, Washington and New Mexico, underscoring the unsettled national fight over whether sports prediction markets are federally regulated derivatives or state-regulated gambling. While pursuing that campaign, Novig has also expanded commercially, including a multiyear New York Mets partnership announced on July 30.