Judge Calls CFTC’s Swap Rules ‘Inherently Contradictory’ as Novig Loses Bid to Block New York

A federal judge denied Novig’s bid to block New York from requiring a state gambling license for its sports event contracts, declining to defer to the CFTC and calling the agency’s October swap rules “inherently contradictory.” Judge Colleen McMahon found at the preliminary-injunction stage that New York can impose its licensing regime despite the federal framework. The ruling matters because it undercuts the CFTC’s claim to exclusive authority over event contracts and opens the door to state-by-state gambling oversight of prediction markets. What to watch next is whether other states follow New York’s lead and how the CFTC responds to the rebuke of its rulemaking.