[New York Federal Judge Rejects Novig's Preliminary Injunction, Allowing State Betting Law to Apply to Its Sports Prediction Market] According to The Block, a New York federal judge rejected Novig's application for a preliminary injunction, which aimed to prevent New York State from blocking its services. The court ruled that Novig's event contracts do not fall under the "Swap" clause of the Commodity Exchange Act, and that New York State can apply betting and sports betting laws to its activities. Betting lawyer Daniel Wallach stated on the X platform that state regulators may soon shift from defending their enforcement power in federal court to actively exercising that power in state court, potentially marking the next significant chapter in sports prediction market litigation.