Novig Gains Federal Approval as Sports Prediction Market Expands

Novig has announced that the Commodity Futures Trading Commission (CFTC) has approved its registration as a designated contract market, giving it the authority to supply event contracts to consumers.

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The designation also means futures commission merchants registered with the CFTC can host trading of those contracts, opening the door for broader participation.

Chief executive Jacob Fortinsky framed the approval as a turning point for the company, saying, “Federal oversight allows us to scale within a framework built on trust, transparency, and fairness.”

Novig intends to roll out sports markets across the United States, though it has not yet revealed which states will be targeted first. Fortinsky added, “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 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.”

The company has set its minimum age at 21 for users, a stricter threshold than some competitors such as Kalshi, which allow access from 18. 

Process took less than seven months

Novig’s path to federal approval was unusually quick. The company first announced in January that it would seek registration with the CFTC under Ludlow Exchange LLC, marking its formal entry into the prediction market space. 

Within six months of filing, Novig secured its designation as a contract market, a timeline that the company described as “one of the fastest designations of its kind in CFTC history.” 

To reach that point, Novig had to show regulators it could meet strict compliance standards. Its application included a detailed plan for trading oversight, guidance on adhering to the 23 principles of the Commodity Exchange Act, and assurances that its event contracts would not be “readily susceptible to manipulation.” 

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The process wrapped up in less than seven months, faster than the nearly eight months it took for fellow newcomer ProphetX, and far shorter than the 18‑month reviews seen under earlier administrations.

Other companies have taken different routes. DraftKings, for example, bypassed the lengthy application process by acquiring Railbird Exchange, a CFTC‑registered platform, in October 2025. 

Sports betting, sweepstakes, and prediction markets: the Novig journey

Novig’s path into prediction markets has been shaped by several pivots over the past few years. The company first chased state sports betting licenses, then shifted into sweepstakes gaming in 2024. 

That model helped it build traction, but the real breakthrough came when Novig turned toward federal regulation, filing with the Commodity Futures Trading Commission to become a designated contract market. 

Backing from investors has fueled this transition. In February, Novig closed a $75 million Series B round led by Pantera Capital, with support from Multicoin Capital, Makers Fund, Edge Equity, and earlier backers like Forerunner, NFX, and Perceptive Ventures. 

The raise pushed total funding past $105 million since 2024, giving Novig the resources to move from sweepstakes into a nationwide exchange. 

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Source: SBC America