A New York federal judge rejected Novig's injunction application, criticizing the CFTC for alleged collusion.

On November 10, Judge Colleen McMahon of the U.S. District Court for the Southern District of New York dismissed prediction market Novig's preliminary injunction application against New York State, ruling that its sports event contracts were unlikely to fall under the definition of swaps under the Commodity Exchange Act, and that New York State could apply betting laws to the company. Novig filed a notice of appeal with the Second Circuit Court of Appeals hours later. McMahon criticized the Commodity Futures Trading Commission's (CFTC) previous order requiring Kalshi to continue operating after being sued in New York State, claiming the order implied collusion between the regulator and the regulated party. She argued that the CFTC's rules define event contracts, such as those related to sports, as swap contracts, yet state that sports betting and casino betting do not fall under the category of swap contracts, creating an inherent contradiction. (Source: Bitcoin.com News)