A sports betting sweepstakes operator is looking to take a run at getting federally regulated to run as a prediction market.
Key Takeaways
- Novig’s request is listed as pending with the CFTC.
- The dual-currency sportsbook would be joining a competitive industry.
- Prediction markets are going through their own legal issues.
Novig filed a “Designated Contract Markets” request with the Commodity Futures Trading Commission (CFTC) dated Jan. 21 under Ludlow Exchange LLC. First reported by Sportico, Novig co-founders Jacob Fortinsky and Kelechi Ukah are listed as the LLC’s directors.
The CFTC lists the request as pending, and it’s unclear if Novig would shift from its current dual-currency, peer-to-peer platform to a prediction-only format or attempt to offer both. Several trading exchanges in the U.S. currently offer spreads, totals, and even player props similar to sportsbooks on numerous sports, including the NFL, NBA, NHL, and college basketball.
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Evolving company
Novig launched in 2024 as a licensed sports betting operator in Colorado but shifted to a peer-to-peer model available in over 30 U.S. states later that year.
The number of operating jurisdictions has dwindled in recent months as sweepstakes gaming operators have come under fire, forcing the company to halt operations in multiple states that have banned dual-currency platforms. This includes lucrative markets such as New York, New Jersey, and California.
The Golden State has no form of legalized sports wagering, but prediction markets like Kalshi, DraftKings Predictions, and FanDuel Predicts are offering sports event contracts there.
Novig announced in September 2025 that it raised $18 million in funding, with plans to expand its product.
"The support from some of the world's leading tech investors, who believe in our mission to democratize sports betting for good, is a powerful endorsement - not just of what we've built, but of the future we're creating,” Fortinsky said. “This funding will allow us to scale our mission across more sports, more formats, and ultimately, to more users."
Prediction problems
Novig’s current model looks much like a sportsbook and already includes a trading team, which could make the transition easy. However, prediction markets are also dealing with their own legal issues.
Kalshi, one of the most popular prediction platforms in the U.S., is entangled in lawsuits with numerous states that have legalized sports betting, including Nevada, New Jersey, and Massachusetts. The CFTC regulates the derivative markets, which Kalshi claims means it can operate in all 50 states, but that is a challenge that will likely continue through 2026.
If approved by the CFTC, Novig would be joining a competitive industry. Kalshi has increased its popularity as a prediction market since it received a court ruling to offer users contracts on the 2024 presidential election. The company expanded into sports during last year’s Super Bowl and heads into this year’s Big Game offering the most robust markets for the Feb. 8 contest between the Seattle Seahawks and New England Patriots.
Polymarket relaunched in the U.S. in December. Big sports betting brands DraftKings, FanDuel, and Fanatics have been operating prediction markets for at least the last month, and even daily fantasy sports sites PrizePicks and Underdog have partnerships that have allowed them to add sportsbook-like trading markets to their products.
