Novig Lands CTFC Approval as Prediction Market Competition Thickens
Novig sees prediction markets as its prime opportunity as a sports betting exchange.
Novig’s pivot to a full-fledged prediction market appears to be complete, as the company announced today it has secured approval from the CFTC as a Designated Contract Market.
Entering the prediction markets space aligns with the founders’ vision when they launched the company in 2021 of creating a peer-to-peer sports betting exchange. Even the name “Novig” suggests bettors on the platform don’t have to pay “vigorish”, or juice, the fee traditional sportsbooks charge on losing wagers.
Novig was also founded on the principle of not limiting winning customers, a common complaint about most sportsbooks and an advantage prediction markets afford sharp bettors.
“Novig is the best place to trade sports. From day one, our vision has been to operate within a single national framework that raises the standard for the entire category,” Novig co-founder and CEO Jacob Fortinsky said in a press release.
“Novig is the first sports prediction market built by sports traders for sports traders, and the momentum we’ve seen to date reinforces that there is real demand for a more efficient, and ultimately more profitable way for sports fans to participate in sports markets.”
Novig’s Windy Road
The regulated sports betting path has been less than friendly to startups such as Novig.
The company obtained a license to operate in Colorado in October 2023, but with its efforts for a New Jersey license unsuccessful, Novig went the sweepstakes route, announcing in September 2024 it was going live with a dual-currency prediction markets model in 42 states plus Washington, DC.
The sweeps industry, though, is beset with regulatory challenges, as the list of states that ban the platforms grows. Prediction markets, meanwhile, are flourishing under the loose regulation of the CFTC.
In February 2026, Novig announced the close of a $75 million funding round, valuing the company at a reported $500 million and bringing to $105 million its total capital raised to date.
Unlike the executives at Kalshi and Polymarket, Fortinsky embraces the reality that prediction markets are sports betting venues, trumpeting his company’s sports expertise.
“Although sports account for the majority of activity on most prediction market platforms, those products are not built with sports traders in mind,” read the February press release. “Novig, by contrast, is built for sports fans, delivering a fair, transparent, and commission-free trading experience.”
Everyone Wants Their Slice of Pie
While the prediction market waters are inviting, there’s a flood of companies jumping in the pool.
Kalshi, of course, has first-mover advantage. Polymarket finally launched its US version officially in May. Financial platforms like Robinhood and Crypto.com are funneling users into their own exchange products. Sportsbook giants DraftKings and FanDuel are operating prediction markets in states where sports betting is not legal, and 365Prediction is now seeking CFTC approval, too.
As a sports betting exchange transitioning to prediction markets, Novig isn’t unique. ProphetX, which launched as a state-licensed sports betting operator under the name Prophet Exchange, earned its DCM and DCO designations last week. Sporttrade, which operated as a regulated sportsbook in New Jersey, Colorado, Iowa, Arizona and Virginia, awaits its CFTC approval. Unlike ProphetX and Sporttrade, Novig has not applied for a DCO license.
The potential for prediction markets is massive – $1 trillion in annual volume by 2030, per Bernstein projections.
That’s if everything goes right.
But with states pushing back hard on the legality of federally-regulated exchanges offering sports event contracts, and the issue likely to be ultimately decided by the US Supreme Court, it’s fair to be skeptical about how many of these companies will thrive, or even survive.
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