Novig Raises $75M Series B as the Sweepstakes Prediction Market Seeks Federal Approval

Novig has raised $75 million in a Series B funding round as the sweepstakes sports prediction platform expands amid intensifying state scrutiny of sweepstakes operators and growing federal support for prediction markets.

In a Feb. 18 press release, the company said the capital will be used “to build a trader-first sports prediction market.” Major crypto-focused venture firms led the funding.

Novig positions itself as a commission-free, peer-to-peer exchange designed specifically for sports traders — contrasting its model with traditional sportsbooks that operate against the house.

“Although sports account for the majority of activity on most prediction market platforms, those products are not built with sports traders in mind,” the company said in the release. “Novig, by contrast, is built for sports fans, delivering a fair, transparent, and commission-free trading experience.”

The funding comes less than six months after Novig secured $18 million in August. The back-to-back capital injections significantly expand the company’s balance sheet at a time when the Commodity Futures Trading Commission (CFTC) has begun signaling more explicit support for prediction market platforms.

Sweepstakes Model Under Pressure

Novig launched in 2021 as a betting exchange in New Jersey and Colorado. It briefly offered sports betting in Colorado before exiting the state.

In 2024, Novig pivoted to the sweepstakes model, positioning it closer to sweepstakes sportsbooks, such as Fliff.

Shortly after its August funding, Novig exited New Jersey following the state’s ban on sweepstakes casinos. It also exited Arizona following regulatory enforcement action.

Notably, New Jersey no longer appears on Novig’s list of restricted jurisdictions. According to the platform’s sweepstakes rules, Novig is unavailable in:

• Alabama
• Colorado
• Idaho
• Louisiana
• Michigan
• Montana
• Nevada
• Tennessee

Alongside New Jersey, there are other notable omissions. In 2025, New York and California enacted bans on sweepstakes casinos, while Washington State has long prohibited sweepstakes-style gaming — none of which currently appear on Novig’s restricted list.

Federal Pathway: CFTC Registration

In its latest pivot, Novig is pursuing a federal regulatory route.

In January, the company applied for registration with the CFTC as a Designated Contract Market (DCM). If approved, Novig would be able to operate event contracts under federal commodities law.

A DCM certification would place Novig alongside federally regulated exchanges such as Kalshi and Polymarket, which operate under CFTC oversight rather than state gaming licenses.

CFTC Support vs. State Scrutiny

Novig’s newest financial injection comes as the CFTC is increasingly taking an assertive stance in defending federal oversight over prediction markets.

Since the beginning of the year, under new Chair Mike Selig, the agency has signaled its intent to modernize its approach to event contracts and has publicly thrown its weight behind the sector.

It has since reinforced the view that sports event contracts fall under federal commodities law. Most recently, the CFTC backed Crypto.com in its Nevada litigation.

The agency’s stance contrasts sharply with that of state gambling regulators. Multiple jurisdictions have targeted the sweepstakes sector, arguing that such products constitute illegal or unlicensed gambling.

The $75 million Series B suggests investors are betting that operating as a DCM is the right path for Novig. Until it receives CFTC certification, however, the platform continues to navigate a patchwork landscape shaped by competing legal interpretations.