TLDR A federal judge denied Novig’s request for a preliminary injunction against New York officials. Judge McMahon found Novig’s sports contracts are not “swaps” under the Commodity Exchange Act. New York can now require Novig to hold a state gambling license or stop listing its sports contracts. Novig became a CFTC designated contract market in June 2026 and entered New York in August 2026. New York has recently used its gambling laws against other firms offering similar contracts.
A federal judge has ruled that New York can apply its gambling laws to Novig, a sports-contract exchange regulated by federal authorities. The decision came on November 10, 2026, in the US District Court for the Southern District of New York.
US District Judge McMahon denied Novig’s request for a preliminary injunction. Novig had asked the court to stop state officials from treating its sports event contracts as gambling while the case moves forward.
At the center of the ruling is a legal definition. Judge McMahon found that Novig’s sports-related contracts are not “swaps” under the Commodity Exchange Act, according to the court filing.
The ruling gives New York the go-ahead to treat the exchange’s sports products under state gambling rules. Novig had argued against that approach when it filed suit.
The Swaps Question
The Commodity Exchange Act is the main federal law that governs futures, options and swaps markets in the United States. Products that fall under it are overseen by the Commodity Futures Trading Commission, known as the CFTC.
Novig’s case relied on the idea that its contracts belong in that federal category. If they were swaps, the company could argue that federal rules, not state gambling laws, should apply to them.
The judge did not accept that view at this stage. By finding the contracts are