TLDR A federal judge paused Novig’s lawsuit against Massachusetts until the state’s top court rules on Kalshi’s related appeal. Novig and New Mexico jointly asked to freeze their case until August 2027, tied to a separate CFTC lawsuit against the state. Massachusetts agreed not to take enforcement action against Novig while the pause is in place. Novig has sued regulators in five states over its sports event contracts. Other companies, including Polymarket, Crypto.com, and Coinbase, have reached similar pause agreements in their own state disputes.
U.S. District Judge F. Dennis Saylor IV granted a joint request from Novig and Massachusetts officials on August 25. The move pauses their lawsuit over prediction market rules.
The case will stay on hold until the Massachusetts Supreme Judicial Court decides Kalshi’s appeal. That appeal challenges an order blocking Kalshi from offering sports event contracts without a state license.
The state’s top court heard arguments on the Kalshi case in May. A ruling has not yet come out.
As part of the deal, Massachusetts cannot start or continue enforcement action against Novig. This protection lasts until at least 14 days after the pause ends.
The court also dropped Massachusetts Gaming Commission officials from the lawsuit. Attorney General Andrea Joy Campbell remains the only defendant in the case.
New Mexico Request Tied to CFTC Case
Novig and New Mexico officials filed a separate motion on August 25. They asked to pause their federal lawsuit until August 13, 2027.
This request connects to a different case. The Commodity Futures Trading Commission sued New Mexico in June.
That federal lawsuit aims to stop New Mexico from enforcing its gambling laws against prediction markets regulated by the CFTC. New Mexico had already sued Kalshi before that.
Briefing has wrapped up on the CFTC’s request for an
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