Novig must wait no longer.
The New York-based sweepstakes operator announced Tuesday that it has officially received approval from the U.S. Commodity Futures Trading Commission to operate as a designated contract market.
- Novig received approval from the CFTC to operate as a federally regulated prediction market, allowing it to expand nationwide under a single regulatory framework.
- The company is transitioning from a sweepstakes-based model and says it has already processed more than $5 billion in trading volume.
- Novig will join a growing field of sports prediction markets, competing with firms such as Kalshi, DraftKings, FanDuel, and ProphetX.
Novig said its approval as a designated contract market by the CFTC means that the company, which has used the sweeps model to offer an exchange product to bettors, can “operate as a federally regulated prediction market and expand nationwide under a single regulatory framework.”
Another CFTC-certified prediction market operator: @Novig has been approved for a DCM license pic.twitter.com/YCexLmjOZu
— Geoff Zochodne (@GeoffZochodne) June 16, 2026
The approval - “one of the fastest of its kind in CFTC history,” Novig says - comes hot on the heels of a similar one last week for a company taking a similar path, ProphetX.
For bettors, though, all of the above means they will soon have a new place to take their business if they so choose.
“Novig is the best place to trade sports,” said Jacob Fortinsky, cofounder and CEO of Novig, in a press release. “From day one, our vision has been to operate within a single national framework that raises the standard for the entire category.”
Novig, yes competition
When exactly Novig will launch its federally regulated prediction markets remains to be seen. However, it could be soon, given that ProphetX has already begun self-certifying its sports-related event contracts for trading.
Novig’s approval also means the prediction market space continues to get more crowded, with a growing number of operators entering the sector and expanding their businesses.
Moreover, sports event contracts remain the most popular product offered by the exchanges, albeit one that is being hotly contested in court by state gambling regulators.
And here's the press release:
— Geoff Zochodne (@GeoffZochodne) June 16, 2026
Novig Secures CFTC Designation, Bringing the First Prediction Market Built for Sports Fans Nationwide pic.twitter.com/SpZK1vakft
This has made competition among sports-focused prediction markets increasingly intense, as entities like ProphetX and Novig are set to launch under federal regulation and face off against incumbents such as Kalshi and longtime state-regulated sports betting brands like DraftKings and FanDuel. That competition will likely ramp up amid the World Cup and as the (American) football season approaches.
New York-based Novig, though, feels confident it can break through with bettors. The company announced a $75-million funding round earlier this year, and claims it has already surpassed $5 billion in trading volume while still using the sweepstakes model.
“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,” Fortinsky said. “Federal oversight allows us to scale within a framework built on trust, transparency, and fairness.”
