Judge denies Novig relief and questions CFTC-Kalshi collusion in sports betting ruling

A Manhattan federal judge declined to block New York from enforcing its gambling laws against prediction market Novig, ruling its sports contracts are sports betting. The judge also criticized the CFTC's emergency order protecting Kalshi, saying it 'smacks of a collusive effort' between the regulator and the firm it oversees. The ruling threatens the legal footing of US prediction markets, a growing venue for crypto-adjacent event trading, and could invite tighter state-level restrictions.