Sports prediction market platform Novig revealed on Tuesday it has left New Jersey, according to Sportico. The operator notified its customers via email of its departure after Governor Phil Murphy signed Assembly Bill 5447, which banned sweepstakes casinos from operating in the state.
Key Takeaways
- Novig told users via email that it has departed New Jersey.
- The new bill in New Jersey defines Novig as a sweepstakes casino due to its dual currency model.
- It marks the fourth state the operator has departed from since its launch 11 months ago.
The bill considers Novig’s platform a sweepstakes casino because users can purchase currency with “no real-world value” to place bets on sports events, from which payouts are made in USD. Under the new legislation, Novig’s platform is defined as a “contest or game,” which is now banned.
Novig has not made an official announcement, but customers in New Jersey were sent emails stating, “We are reaching out to inform you of a change to your Novig account. Due to new legislation, Novig will be required to restrict platform usage for users located in the state of New Jersey starting August 15, 2025.”
The shutdown in the state came only days after the company announced it had raised $18 million in a Series A funding round.
Novig's departure from New Jersey marks the company's fourth state exit since it launched in 42 states in September 2024.
New Jersey assemblyman proposes ban on microbets
Sweepstakes casinos aren’t the only gambling platform that New Jersey lawmakers have considered banning in recent months. Democratic Assemblyman Dan Hutchison proposed a bill in July that would prohibit sports microbetting.
If passed, the bill would ban sportsbook operators from offering microbets, wagers placed on results such as the next pitch in a baseball game. Gamblers caught would face fines between $500 and $1,000 and be subjected to a disorderly persons offense.
“The pace of micro betting is designed to keep people gambling constantly, making one impulsive bet after another with little time to think,” Hutchison said in the release. “This bill is a commonsense step to slow that cycle down and protect individuals from the financial and emotional harms that can come with excessive betting.”
New Jersey receives new brief from Kalshi amid lawsuit
Last month, Kalshi filed a brief in the U.S. Court of Appeals after being issued cease-and-desist letters in New Jersey, which alleged the prediction platform violated state gambling laws.
Unlike Novig, Kalshi is not backing down and argued in its brief that it cannot be regulated by the state of New Jersey because it is federally regulated by the Commodity Futures Trading Commission.
A judge from the U.S. District Court for the District of New Jersey granted Kalshi a temporary injunction in April, after the cease-and-desist was filed in March, allowing Kalshi to continue its operations while the case unfolds.
