Ludlow Exchange Sues Wisconsin to Block Gambling Law Enforcement

Ludlow Exchange LLC, the parent company of the prediction market platform Novig, filed a federal lawsuit to block the Wisconsin Department of Justice from enforcing state gambling laws against the firm. After entering the Wisconsin market in August 2026, the company sought an injunction and a legal declaration that its event contracts are derivatives regulated exclusively by the U.S. Commodity Futures Trading Commission rather than sports bets.

Ludlow Exchange argues that federal law preempts state enforcement and that the threat of a Class I felony creates an existential risk for the business. The company maintains that its operations do not constitute gambling.

This legal challenge follows a series of lawsuits filed in April by Attorney General Josh Kaul against other platforms, including Coinbase, Kalshi, and Polymarket. Kaul alleged those firms violated state law by operating online sports betting servers outside of tribal lands, asserting that such platforms were thinly disguising unlawful conduct.