Novig is fully embracing its role in the prediction markets, having recently received approval from the CFTC to operate as a Designated Contract Market. This shift aligns with the company's founding vision of establishing a peer-to-peer sports betting exchange, which was initiated in 2021. The name 'Novig' itself reflects the company's ethos of eliminating the traditional 'vigorish' fee that sportsbooks impose on losing bets.
One of Novig's core principles is to avoid restricting successful bettors, a common frustration among users of traditional sportsbooks. Jacob Fortinsky, co-founder and CEO of Novig, emphasized in a press release that the platform aims to set a new standard in the sports trading arena. He stated, 'Novig is the first sports prediction market created by sports traders for sports traders, and the response we've received indicates a strong demand for a more efficient and profitable way for sports enthusiasts to engage in sports markets.'
However, the road for startups like Novig in the regulated sports betting landscape has been challenging. The company secured a license to operate in Colorado in October 2023, but faced setbacks in obtaining a license in New Jersey. Consequently, Novig announced in September 2024 its intention to launch a dual-currency prediction markets model across 42 states and Washington, DC.
Despite the potential of the sweeps industry, it is fraught with regulatory hurdles as more states impose bans on such platforms. In contrast, prediction markets are thriving under the more lenient regulations provided by the CFTC.
In February 2026, Novig completed a funding round of $75 million, bringing its valuation to $500 million and total capital raised to $105 million.
Unlike competitors like Kalshi and Polymarket, Fortinsky acknowledges that prediction markets are fundamentally sports betting venues, highlighting Novig's expertise in the sports domain. He noted that while many prediction platforms primarily focus on sports, they often overlook the needs of sports traders. In contrast, Novig aims to provide a fair, transparent, and commission-free trading experience tailored for sports fans.
The prediction market landscape is becoming increasingly crowded, with numerous companies entering the field. Kalshi holds a first-mover advantage, while Polymarket launched its US version in May. Other financial platforms, including Robinhood and Crypto.com, are also introducing their exchange products. Major sportsbooks like DraftKings and FanDuel are exploring prediction markets in states where traditional sports betting is prohibited, and 365Prediction is in pursuit of CFTC approval as well.
Novig is not alone in its transition from a sports betting exchange to prediction markets. ProphetX, which began as a licensed sports betting operator, recently received its DCM and DCO designations. Sporttrade, another regulated sportsbook, is awaiting CFTC approval. Notably, Novig has opted not to apply for a DCO license, choosing instead to partner with Bitnomial as its derivatives clearing organization.
The potential for prediction markets is significant, with projections estimating an annual volume of $1 trillion by 2030, according to Bernstein. However, this optimistic outlook hinges on the resolution of legal challenges regarding federally-regulated exchanges offering sports event contracts, which may ultimately be determined by the US Supreme Court.