Novig loses court shield, and New York gambling laws strike back
Summary
A federal judge denied Novig’s request for preliminary protection from New York gambling laws, ruling that its sports contracts likely are not swaps under the Commodity Exchange Act. The judge added that even if they qualified as swaps, federal exchange designation would not necessarily prevent New York from applying gambling rules to betting activity. The court said Novig could potentially comply through state licensing and geographic controls. Novig appealed to the Second Circuit on Nov. 10. The decision leaves its federal designation intact and addresses only interim relief, not a final ruling or shutdown.
